Ashish Gupta, chief investment officer, Axis AMC, noted that investors appear to be favouring equities, aiming to allocate a greater portion of their assets in that direction.
The new scheme will undergo changes on the fund allocation across asset classes, an official statement said. Peeved at fund houses allocating a bulk of multicap fund investments in large cap stocks, capital markets regulator Securities and Exchange Board of India (Sebi) had in September asked fund houses to ensure at least 25 per cent of the assets under management are invested in small cap, mid cap and large cap stocks to ensure proper nomenclature. As per a September media report, Axis Multicap Fund would have had to increase its midcap exposure by 14.3 per cent and small cap exposure by 16.1 per cent to comply with the Sebi requirements.
Synopsis
Axis Mutual fund has renamed its multicap scheme as the Axis Flexicap Fund. This comes after Sebi put a strict mandate for multi cap funds to allocate at least 25% each in small and mid cap stocks.
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Axis Mutual fund has renamed its multicap scheme as the Axis Flexicap Fund. This comes after the Securities and Exchange Board of India put a strict mandate for multi cap funds to allocate at least 25% each in small and mid cap stocks. Later, in its circular dated November 6, 2020, Sebi had introduced a new category of equity oriented schemes - flexi cap funds.
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