We are undergoing a tectonic shift in mutual fund world, when it comes to categorisation of mutual funds.
On October 2017, Securities and Exchange Board of India (Sebi) came out with a circular that clearly outlined the kind of stocks that a fund can own.
It also outlined what really forms a large-cap, mid-cap and small-cap stock and respectively a large-cap, mid-cap and small-cap fund.
So, there are very clear rules, criteria and fund houses have been given a couple of months to comply with.
Right now, that process is under way, which you have noticed that there are advertisements in the newspapers, which are announcing changes to some of the most important schemes in the country.
Feroze Azeez of Anand Rathi Financial Services Ltd and Ashish Shankar of Motilal Oswal PWM discuss the same in depth so that one can make the right choice in case one happens to be in these mutual funds.