Swarup Mohanty, CEO of Mirae Asset Global Investments talks about the nomenclature of multi-cap funds.
On September 15, the capital market regulator Securities and Exchange Board of India (SEBI) ruled that multi-cap mutual fund schemes will have to invest at least 25 percent each in large-cap, mid-cap, and small-cap stocks. This has thrown a lot of multi-cap funds in a tizzy as many have always invested a significant chunk in large-cap stocks and very little or negligible money in small-cap stocks. But SEBI wants these funds to be true-to-label. Is the regulator justified in this move or should mutual funds have known better? Is SEBI micro-managing the mutual funds industry and interfering unnecessarily or are investors’ interests better protected by SEBI’s watch?
Swarup Mohanty, chief executive officer of Mirae Asset Global Investments (India) talks to Kayezad E. Adajania, Moneycontrol’s personal finance editor on this podcast episode of Simply Save to guide investors on what they should do.