What is multi cap fund?

Definition: These are diversified mutual funds which can invest in stocks across market capitalization. Description: These funds invest in stocks across market capitalization. That is, their portfolio comprises of large cap, midcap and small cap stocks.

What is mutual fund as per Sebi?

Mutual fund is a mechanism for pooling money by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document. A mutual fund is required to be registered with Securities and Exchange Board of India (SEBI) before it can collect funds from the public.

What is the difference between multi cap and Flexicap fund?

The large-cap allocation of multi-cap funds will limit downside risks in volatile markets. The flexi-cap category of equity funds, on the other hand, will invest at least 65\% of the total assets in equity investments without any defined limits in terms of exposure they should take to large-, mid- or small-cap segments.

What are thematic funds?

Thematic funds are predominantly a type of equity mutual funds that invest in companies tied around a well-defined theme across various sectors. For instance, a fund built on farming/agriculture theme might invest in equity stocks belonging to the automobiles, chemicals, fertilizers, core agriculture stocks.

How are mutual funds regulated by SEBI?

A sponsor sets up the mutual funds as per the guidelines of the Indian Trust Act, 1882, for Public Trust. They are responsible for listing with the SEBI, having provisions for resource management and ensuring the functioning of the fund takes place as per the SEBI guidelines.

What is the meaning of Sebi?

Securities and Exchange Board of India
Key Takeaways. The Securities and Exchange Board of India (SEBI) is the leading regulator securities markets in India, analogous to the Securities and Exchange Commission in the U.S.

Which is the best Flexicap fund?

5 Best Flexi Cap Funds For SIP In 2021 Based On 5-Star Rating of Value Research

• Why should you invest in flexi cap mutual funds in the bull market phase?
• IIFL Focused Equity Fund Direct Growth.
• Parag Parikh Flexi Cap Fund Direct-Growth.
• PGIM India Flexi Cap Fund Direct-Growth.
• UTI Flexi Cap Fund Direct-Growth.

Which is better multicap or Flexicap fund?

From 31 January 2021 till 15 June 2021, multi cap funds with 26.16\% returns (with minimum 25\% small cap stocks) have outperformed the flexi Cap set (large cap oriented) which has delivered 19.19\%. Returns are of regular (non-direct) option. Historically, small cap stocks have done better.

What is SEBI’s new policy on flexi-CAP funds?

As per the SEBI circular, Flexi-cap funds will have to have a minimum of 65\% of their assets in equity and equity-related investments. There is no cap on how much these funds can or need to invest in large, mid, or small caps. This is the same investment mandate multi-cap funds had earlier.

What is flexi cap category in mutual funds?

Securities and Exchange Board of India (Sebi) has given a green signal to the introduction of a flexi cap category in mutual funds. Schemes in this category are required to invest at least 65\% of their corpus in equity. Unlike the new multi cap funds, there is no restriction in terms of allocation to any market cap.

What is SEBI’s rationalization of mutual funds?

The Securities and Exchange Board of India (SEBI) has been trying to rationalize and categorize mutual fund schemes since 2017 to make it easier for investors to choose the right schemes (refer SEBI circular number SEBI/HO/IMD/DF3/CIR/P/2017/114 dated October 06, 2017).