MUMBAI (Reuters) - India's market regulator has classified mutual fund investments into five broad categories and said it would allow only one scheme per category with some exceptions, in an effort to help retail investors take decisions easily.
The categories are equity, debt, hybrid, solution-oriented and others, the Securities and Exchange Board of India (SEBI) said in a circular on Friday.
Fund houses often face criticism for offering too many schemes, thus raising confusion among retail investors.
The regulator said mutual funds must now submit proposals within two months to merge, wind up or change the attribute of schemes to align with the categories.
(Reporting by Abhirup Roy; Editing by Subhranshu Sahu)