Mutual Funds:The Association of Mutual Funds in India, the body of the mutual fund industry, has issued a policy to the trustees of all mutual funds to look after the interests of investors investing in small-cap and mid-cap schemes. Have been asked to prepare. AMFI said that SEBI has asked it to convey this to all the mutual funds.
Amfi said in a letter to mutual funds that SEBI said in its order that the type of inflow in small-cap and midcap segments in the market is increasing rapidly and the trustees should work with the Unit Holder Protection Committee of the AMC. Such a policy should be prepared which is in the interest of the investor.
SEBI said that asset managers companies and fund managers should take such steps which are necessary and immediate to protect the interests of investors, including controlling inflows, portfolio rebalancing, but not limited to this. SEBI said that there is also a need to ensure that investors who were the first to initiate redemption do not leave other investors behind. In its order, SEBI has asked all the asset management companies to make this policy public on the website within 21 days after taking approval from the trustees.
Actually, AMFI wrote a letter to mutual funds giving information about the new order of SEBI, after which a big fall was seen in the stock market in today's trade. In which the biggest decline has been on small-cap and mid-cap stocks.
The flood of investment in smallcap and midcap funds has increased the concern of stock market regulator SEBI. SEBI is worried about how smallcap and midcap funds of mutual funds will behave if there is a sharp decline in the stock market. SEBI has asked asset managers of mutual funds to provide more information to investors about the risks associated with investing in smallcap and midcap funds. p>
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