In a move to declutter and rationalise mutual funds, Securities and Exchange Board of India (SEBI) sets 5 broad categories for mutual fund (MF) schemes. Also defines largecap, midcap and smallcap companies by market capitalisation.
In an interview to CNBC-TV18, Nilesh Shah, Managing Director, Kotak Mahindra AMC shared his views and outlook on the same.
Sebi has done this with twin objective, one from an investor point of view, there were too many schemes which were confusing investors. So Sebi has taken the right steps to rationalise the categories. Second, also to diversify and create a level-playing field in MF industry, he said.
Both from a customer point of view as well as from an industry point of view, this is a path-breaking move and we are very thankful to Sebi for doing this, he added.
As of today, this 10 categorisation is good enough, if there is a need to launch more, certainly you can request Sebi to consider and create a category over a period of time, said Shah.For full interview, watch accompanying video...