Sebi Revises Mutual Fund Categorisation Rules Introducing New Fund Types and Overlap Limits

The Securities and Exchange Board of India (Sebi) has overhauled mutual fund categorisation rules to enhance clarity, transparency, and alignment with fund objectives. Key changes include new categories like contra funds, sectoral debt funds, and goal-based life cycle funds with defined maturity and exit loads. Sebi mandates strict portfolio overlap limits, minimum investment norms for equity funds, and uniform naming conventions. Existing schemes must comply within six months, while some overlap rules have a phased three-year implementation to reduce duplication and improve investor understanding.