You are probably looking at different names of your mutual fund schemes in the statements and portfolio trackers. They don’t look like what you invested in. No need to panic. Here’s a quick touch base on the changes that are taking place.
The changes are a result of the October 2017 circular from SEBI asking the mutual funds to make their mutual fund schemes more standardised in terms of category and benchmarks. The names should also communicate the purpose of the scheme. The action has started and here are some of the changes announced so far.
Let’s first take the quick and simple ones.
Parag Parikh Long Term Value Fund will now be known as Parag Parikh Long Term Equity Fund. That’s the only equity fund PPFAS MF has.
Mirae Asset India Opportunities Fund will now be known as Mirae Asset India Equity Fund (with effect from March 1). This is the only change Mirae MF is doing.
There is no other change in the fundamental attributes of the above 2 schemes.
The big changes in mutual fund schemes
There are some wholesale changes expected from the biggies and right off the bat are the ones from DSP BlackRock. There are changes in fundamental attributes of the schemes. Refer the image below. (Source: Email sent out by the fund house).
You will notice from the Key change column that the scheme features are now in line with the categories defined by SEBI.
Since, these are changes in fundamental attributes, the fund house is also giving you an option to exit the scheme now without paying any exit loads. However, you are liable to pay taxes, if any.
We are expecting more changes to be announced by the biggies such as Aditya Birla, HDFC, ICICI, etc. in the next couple of months. Stay attuned – you can track all the updates in the mutual fund schemes here.