Kotak mutual funds, which manages the largest Flexicap fund, has announced the launch of a multicap fund.
The new fund offer (NFO) will open up to the subscription between September 8, 2021, and 22 September, here 2021.
The multicap category has opened up mutual funds after SEBI redefined the category.
The new multicap category
Earlier, there were no limits on the investment of a multicap fund. But in September 2020, Sebi said that multicap funds must invest at least 25 percent each in large caps, Mid-Cap, and small caps.
This was done that most multicaps had become large capabilities and do not invest sufficiently in stocks of medium and small market capitalizations.
The MF industry interpreted the rules to suggest that fund managers have the flexibility of multicap funds, while SEBI has seen as a category that gives investors adequate exposure through the listed market ceiling.
After the requests from the MF industry, SEBI allowed former multicap funds to repositioned as FLEXICAP funds. Thus, a multicap defined category has reopened for fund houses, which they fill now.
