Thursday brought transformative news from SEBI: active equity mutual funds can invest in gold and silver, expanding investor options in India’s mutual fund landscape. This, alongside other category tweaks, seeks to foster diversity and efficiency.
Equity schemes’ structures—e.g., 80% large-cap minimum—leave room for tactical plays. SEBI now sanctions gold/silver tools, money markets, and InvITs for the balance, within bounds. It’s a strategic pivot, letting funds tap commodities’ resilience.
Retirement/children schemes bow out for Lifecycle Funds, featuring 5-30 year tenors with de-risking glides from equity to debt. Assets include stocks, fixed income, REITs, InvITs, commodity derivatives, gold/silver ETFs. Discipline via 3% first-year exit loads, with redemption rights.
AMCs gain a 12th slot for active equity/hybrids, supporting value and contra if portfolios diverge >50%. Thematic/sectoral mandates enforce 50% non-overlap with other equities (save large-caps). As AUM surges, SEBI’s blueprint minimizes clutter, enhances uniqueness, and aligns with investor needs for holistic, goal-based investing.