Market regulator SEBI, in September 2020, announced that multicap funds would be bound to invest a minimum of 25 percent each in large, mid, and smallcap stocks.
This came as a shocker for fund managers because most multicap funds were predominantly stocked up with large stocks.
However, after a lot of back and forth, the industry’s petition for a new flexicap category was accepted in November 2020.
So, almost all of Rs 1.5 lakh crore AUM in the category migrated over to the new flexicap category and what remains in multicap now is just about Rs 20,000 crore worth of assets.
CNBC-TV18’s Sumaira Abidi spoke to Santosh Joseph, Founder and Partner at Germinate Investor Services, to understand if multicap funds still hold any relevance.Watch video for more.