Mumbai, September 13, 2020 (GPN): Welcoming SEBI’s initiative on a Sunday evening, to issue clarification regarding asset allocation to multi-cap schemes of Mutual Funds, Association of Mutual Funds in India (AMFI) today said the Mutual Fund Industry is committed to following SEBI’s regulations in letter as well as spirit, and in this matter, would abide by getting the scheme’s portfolio to reflect the true nature of the scheme.

AMFI welcomes SEBI’s clarification, which is extremely important for the orderly functioning of the market, as street had started anticipating huge flows in small and mid-cap stocks over next couple of months from the multi cap schemes. 

Mutual Fund Industry’s endeavour is to optimize risk adjusted returns for the unitholders. Given the flexibility now offered by  SEBI to facilitate switch to other schemes or merger of  schemes, appropriate portfolio changes will accordingly happen in an orderly fashion. 

 AMFI is grateful to SEBI for its open door policy for a dialogue.  AMFI will gather feedback from members and revert for non-disruptive execution of multi cap funds portfolio balancing. 

AMFI looks forward to working closely with SEBI to consistently improve investor communication, to bring about increased transparency and offering true-to-label products.

About AMFI

The Association of Mutual Funds in India (AMFI) is dedicated to developing the Indian Mutual Fund Industry on professional, healthy and ethical lines and to enhance and maintain standards in all areas with a view to protecting and promoting the interests of mutual funds and their unit holders.

AMFI, the association of SEBI registered mutual funds in India of all the registered Asset Management Companies, was incorporated on August 22, 1995, as a non-profit organisation. ENDS