Mutual Funds Schemes Reclassified as per New Rules to Help Investors Choose & Compare Funds

The Securities and Exchange Board of India (SEBI) has introduced a new system of fund classification to categorize mutual fund schemes to make decision making easier for consumers.The asset managers will now have to reclassify their product offerings according to the new directives.
The new classification will simplify and bring uniformity among the different types of funds.There are an estimated 837 open-ended schemes for the investors to choose from India.The new reclassification is aimed to avoid duplication and confusion.A fund house can offer 10 types of equity funds, 16 categories of bond schemes and 6 hybrid funds.
Fund houses have begun recategorizing their schemes.Some schemes will now be merged or renamed as per the new norms.Investors will also have to review and reallocate their funds as per their needs.