Question: SEBI has recently introduced a ‘Flexi-cap category’ for mutual funds. Which one of the following is correct regarding this?
(a) Under this at least 65% of the corpus should be invested in equity
(b) Under this at least 45% of the corpus should be invested in equity
(c) Under this at least 25% of the corpus should be invested in equity
(d) Under this at least 75% of the corpus should be invested in equity
Answer (a)
Related facts
- SEBI has recently(November 2020) introduced a ‘Flexi-cap category’ for mutual funds.
Mutual Fund Advisory Committee
- In order to give more flexibility to the mutual funds and taking into account the recommendations of Mutual Fund Advisory Committee (MFAC), a new category named “Flexi Cap Fund” under Equity Schemes will be available with the following scheme characteristics: —
| Category of Scheme | Scheme Characteristics | Type of scheme (uniform description of scheme) |
| Flexi Cap Fund | Minimum investment in equity & equity related instruments -65% of total assets | An open ended dynamic equity scheme investing across large cap, mid cap, small cap stocks |
Role of AMC
- The AMC shall ensure that a suitable benchmark is adopted for the Flexi Cap Fund.
- Here AMC stands for — Asset Management Companies.
By — Pankaj Pandey.