SEBI Overhauls Mutual Fund Rules, Introduces Life Cycle Funds and New Investment Norms

The Securities and Exchange Board of India (SEBI) has introduced a comprehensive overhaul of mutual fund regulations, discontinuing solution-oriented schemes like retirement and children's funds and replacing them with Life Cycle Funds featuring glide-path strategies and goal-based investing. The reforms also allow equity funds to allocate up to 35% of non-core portfolios to gold, silver, InvITs, and debt instruments, and permit fund houses to offer both value and contra funds with overlap limits. These changes aim to enhance transparency, simplify fund categories, and provide greater flexibility for investors, while addressing concerns about tax implications and operational challenges during the transition.