Mutual Funds Name Change, Category consolidation – how does this affect me?
“What’s in a name? that which we call a rose by any other name would smell as sweet.”
― William Shakespeare, Romeo and Juliet
Most Indian mutual fund managers won’t agree with the above quote. SEBI has instructed Mutual fund companies to distinguish different schemes in terms of asset allocation and investment strategy. The aim is make it easier for the investor to compare the products. According to the regulator, AMCs use these names as marketing tools to attract customers and many of the new buyers may not fully understand the scheme. This makes sense if one has to choose from around 1998 mutual fund schemes (AMFI March 2016 newsletter) that have raised funds till date.