How to Get a Consolidated View of the MF Schemes list post-SEBI Reclassification?

As investors, we compare various mutual fund schemes, look for investment transparency to meet goals, and choose a scheme accordingly. The mutual fund industry is one of the sectors that has been sailing smoothly now, even when the market is down. Given that the sector has attracted record inflows, why did the Securities and Exchange Board of India initiate the reclassification?On 6th October 2020, the regulator announced the re-categorisation and re-rationalisation of Mutual Fund schemes to bring uniformity between schemes offered by Asset Management Companies (AMCs). The new rule streamlines product positioning, mutual fund sector, and aligning mutual fund scheme as per investment pattern.The following are the guidelines issued by the regulator:

• It has reclassified the small-cap, mid-cap, and large-cap stocks based on market cap relative ranking instead of absolute cut-offs
• The name should mention the asset mix and risk clearly
• It has classified equity, debt, and hybrid funds into 16, 6, and 2 categories, respectively.
• SEBI has prescribed two each for Solution Funds and Index Funds.

Considering the new announcement, you must have received category change and name change email notifications from your fund house. As an investor, you need to first take a look at your investment portfolio and check for the schemes that you're investing in. If there are no changes in your scheme, you don't need to worry about the reclassification.In case you're holding multiple schemes from different AMCs, you will have to understand what changes are done to the schemes. It can be challenging for new investors as you may have to visit your fund manager to comprehend the SEBI reclassification.Whether you're a new or an experienced investor, you don't need to worry about getting a consolidated view of your "mutual fund change list scheme," you have to follow the three simple steps:

• Check Email(s) from your AMCs Regarding the SEBI's recent regulation, which many new investors may not be aware of, you need to check your mailbox and look for the notification you may have received from your fund house. Make sure you don't delete these emails as these are important notices wherein change in the mutual scheme may be listed.
• Mutual fund house websites If you want to get a consolidated view of the Mutual Fund Change list schemes, you can also visit the company's official website. Visit the mutual fund company official website, where you can access the pages related to Notices/Download/Addendum to know about Mutual Fund Re-Categorization.For example: if you are holding a mutual fund scheme of Aditya Birla, then you need to visit the Aditya Birla Mutual Fund House website, go to Forms and Downloads, click on Addendum, 2019, Notice-cum-addendum dated 15.4.2019, then select Categorization and Rationalization of the Schemes of Aditya Birla Sun Life Mutul
• How to get a consolidated view of the Mutual Fund Scheme change list? Many Mutual Fund Online Platforms are offering a consolidated view of the mutual fund schemes' changes. Through this online facility, you can get to know scheme name, fund category as well as download notices issued by AMCs

As an investor, it is significant that you are aware of the SEBI reclassification. It is prominent in cases where the category is changed or merged with another one. In case you observe that there is a major change in the objective of the fund, then it is time to evaluate your investment strategies. You can need to check your overall portfolio. The risk factor may go up or down.Therefore, you need to keep track of your MF schemes with the new regulation in place.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.