SEBI Introduces Mutual Fund Reforms to Reduce Overlap and Enhance Scheme Clarity

The Securities and Exchange Board of India (SEBI) has introduced comprehensive reforms to mutual fund regulations aimed at reducing portfolio overlap and improving scheme differentiation. Key changes include stricter limits on portfolio overlap, discontinuation of solution-oriented funds like retirement and children's schemes, and the introduction of Life Cycle Funds. The reforms also clarify investment flexibility, including gold and silver exposure, and strengthen definitions for equity fund categories such as value and contra, promoting goal-based investing and reducing product proliferation.