SEBI seems to be forgetting that they are Market watchdogs and not Fund Managers.
Too much of such tinkering can have devastating effects on various schemes.
Too much of such tinkering can have devastating effects on various schemes.
Judge the impact based on this break up of Large, Mid and Small Cap exposures in current Multi Cap schemes.
At current market levels, there will be buying in Small Caps and selling in Large Caps - which is not advisable from any angle.
At current market levels, there will be buying in Small Caps and selling in Large Caps - which is not advisable from any angle.
There will be major chaos in current Multi Cap schemes. Those who invested with an aim to have Large & Mid Cap exposure will have to bear the burden of Small Caps as well going forward.
By the way many AMCs have stopped accepting money in Small Caps due to lack of choices at this stage. What will they do with additional funds they need to pump into this segment?? Buy any junk??
Multi Cap schemes were popular as Fund Managers could allocate between Large/Mid/Small cap based on opportunities available instead of Investors choosing based on these Market Caps.
Now Fund Managers are forced to invest irrespective of investment story.
Now Fund Managers are forced to invest irrespective of investment story.
Multi Cap as a category should be abolished and Investors should create their own Multi Caps based on their own by allocating to Large/Mid/Small Cap schemes in proportion they deem fit.
They cannot be forced to have Small Caps just for the sake adhering to some notification.
They cannot be forced to have Small Caps just for the sake adhering to some notification.
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