MFs to stop accepting fresh investments
2 Oct 2012 12:42 AM GMT
Mutual funds will stop accepting fresh investments in over 100 schemes with SIP [Systematic Investment Plan] option, as market regulator SEBI has asked fund houses to move to 'one plan, one scheme' structure.
As per SEBI's guidelines, the single plan structure would apply to all new schemes with effect from Monday, while existing schemes with multiple plans [based on investment amount] can accept fresh subscriptions only under one plan.
Other plans will continue till the existing investors remain invested in the plan.
SIPs provide the mutual fund investors option to put in as low as Rs 100 per month and have become quite popular in recent years.
While the fund houses would continue to offer SIP options in their schemes, they can not launch multiple investment plans for one single scheme. The move is part of reform measures taken by SEBI, coming into effect from Monday.
As per SEBI's guidelines, the single plan structure would apply to all new schemes with effect from Monday, while existing schemes with multiple plans [based on investment amount] can accept fresh subscriptions only under one plan.
Other plans will continue till the existing investors remain invested in the plan.
SIPs provide the mutual fund investors option to put in as low as Rs 100 per month and have become quite popular in recent years.
While the fund houses would continue to offer SIP options in their schemes, they can not launch multiple investment plans for one single scheme. The move is part of reform measures taken by SEBI, coming into effect from Monday.
Next Story
