The big implication of new rules in #multicap fund category by SEBI. An impromptu attempt at rambling up some thoughts. Would love comments and feedback no how to benefit from this trend. Some points i cover in tweets below 1/5
1) 18-20% of the Total Equity AUM is in Multicap Funds - Suddenly the rules of the game have changed. Will lead to merger and other creative solutions but not mad buying of smallcaps.
#FunFact - There are 35 schemes of #MultiCap Fund and 29 of #LargeCap & 27 of #LargeandMidcap Fund. #Multicap AUM = 1.46 lakh cr. #Largecap = 1.48 lakh cr. The regulator has a problem in principle and true to label issues. Why did they not notice till now? Source -AMFI site
3) How does a Fund Manager make Alpha with a Large Book and No Flexibility.
Tough for Fund Manager to Outperform.
How to justify 0.5-2.5% fees with hardly any Alpha going forward.
4) The Big Shift towards ETFs, Direct Equity.
Sebi+ Technology
These are my personal views and can be wrong or over-thinking. Would love the feedback and comments on how to benefit from this trend.
Share this Scrolly Tale with your friends.
A Scrolly Tale is a new way to read Twitter threads with a more visually immersive experience.
Discover more beautiful Scrolly Tales like this.