Change in the Names of Mutual Fund Schemes of Motilal Oswal and Mirae Asset MF
In October 2017, the prominent regulatory body, Securities and Exchange Board of India (SEBI) issued a circular asking the mutual fund houses to classify their schemes into clearly defined categories.
To introduce uniformity and clarity, SEBI has instructed the fund houses to have only one scheme per category, sparing the index funds, fund of funds, and sector/thematic schemes. Mutual fund houses that have multiple products in a category are either merging or winding up some schemes or changing their fundamental attributes.
Following the trend, Motilal Oswal Mutual Fund has already made some changes in the existing schemes in line with new SEBI norms. The Board of Directors of Motilal Oswal Trustee Company Limited (MOTC) and the Trustee to Motilal Oswal Mutual Fund (MOMF) has approved some changes on re-categorization of mutual fund schemes. The modifications will be effective from March 16, 2018.
In the same process, Mirae Asset Mutual Fund has changed the fundamental attributes of two of its schemes and has changed the name of Mirae Asset India Opportunities Fund to Mirae Asset India Equity Fund. All the changes will be effective from March 14, 2018.
The new classification norms are seen as a step in the right direction to bring clarity and uniformity in mutual funds. However, the investors may notice some impact on the performance of mutual funds over a short-term period.
For more updates regarding the changes in the schemes’ name and fundamental attributes, stay tuned to MySIPonline.
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