Changing investor preference alters pecking order of Equity MF categories

Sub-categories of equity-oriented schemes have seen a change in pecking order based on assets under management. While the large-cap category has maintained the numero uno position, the equity-linked saving scheme (ELSS) — which offers tax benefit to investors — has risen to the second position. Meanwhile, the rank of the multi-cap category has slipped to four from two last year.

This is because of change in regulations.

Last year, Sebi modified scheme characteristics of ‘multi-cap’ schemes, wherein at least 25 per cent of the corpus had to be invested in large, mid, and small-cap stocks each. It also created