Sebi approves new 'flexi-cap' category with freedom to invest across m-caps

Industry players reckon most of the existing multi-cap funds will switch to the new category

The Securities and Exchange Board of India (Sebi) has heeded the mutual fund industry’s request for a new ‘flexi cap’ category, with the freedom to invest across market capitalisation buckets, effectively laying to rest apprehensions over the recent change in multi-cap definitions.

Fund houses can launch new schemes under this category as well as convert an existing scheme to a flexi-cap fund after selecting a suitable benchmark, the regulator said on Friday after taking in inputs from the Mutual Fund Advisory Committee, and earlier the Association of Mutual Funds in India. This allows existing multi-cap schemes that are not comfortable with