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How to Pick Mutual Funds That Beat the Market

  Smart Strategies for Investing in Mutual Funds: A Guide to Maximising Your Returns One of the most well-liked investing options for people looking for expert management and diversification without having to choose individual equities is a mutual fund. One of the easiest ways for people to accumulate wealth over time is through mutual fund investments. Mutual funds combine the capital of numerous individuals to invest in a diverse portfolio of stocks, bonds, and other securities, in contrast to direct stock market investing, which necessitates considerable time, study, and risk tolerance. Mutual funds are a well-liked option for both new and experienced investors due to their expert management and diversification. But merely investing in a mutual fund and crossing your fingers seldom yields the best outcomes. A comprehensive approach that matches the appropriate fund selection and management strategies with your financial objectives, risk tolerance, and investment timeline is nece...
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SEBI changes asset allocation rules for multi-cap mutual funds

SEBI changes asset allocation rules for multicap mutual funds

 

The Securities and Exchange Board of India (SEBI) has made some changes in the asset allocation rules for multi-cap mutual funds. According to the new rules, such funds will be required to invest at least 75 per cent of their funds in shares. This limit is currently 65 per cent. In addition, such funds would have to invest at least 25 per cent each in the shares and related securities of companies with large, medium and small market capitalization, the SEBI circular states.

 

Mutual fund industry experts say the move will divert Rs 30,000 to 40,000 crore from stocks of companies with large market capital to midcap and smallcap companies. The regulator stated that all multi-cap funds will complete compliance with these provisions within one month from the date of publication of the next list of shares by the Association of Mutual Funds in India (AMFI). The date is January 2021.

 

SEBI said that the multi-cap fund scheme has been amended with a view to diversify the investment of multi-cap funds into large, mid and smallcap companies. Currently, multi-cap funds have to invest 65 per cent of their total assets in shares and related securities. Apart from this, there is no restriction on investing in large, mid or smallcap of these funds. Experts say that because of this, such multi-cap funds make a high allocation in large-cap. The remaining investment is done in medium and small-scale market capitalization stocks.


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