What are the Sebi guidelines for the mutual fund schemes?

What are the Sebi guidelines for the mutual fund schemes?

Key Highlights of SEBI guidelines for Mutual Funds

  • The categorisation of schemes into five groups – Equity, Debt, Hybrid, Solution-Oriented, and Others.
  • Large, mid and small-cap mutual funds have been defined clearly.
  • There is a lock-in period specified for solution-oriented schemes.

What are alternatives to mutual funds?

Alternative investments can include private equity or venture capital, hedge funds, managed futures, art and antiques, commodities, and derivatives contracts. Real estate is also often classified as an alternative investment.

Will mutual funds disappear?

Mutual funds will not disappear. They will survive on sheer inertia for at least several decades, as their annual net redemption rate is but a fraction of their enormous bulk. Furthermore, they will remain a mainstay of 401(k) plans for the foreseeable future, because 401(k) recordkeepers struggle to handle ETFs.

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Who are the regulators of mutual funds?

Mutual funds in India are regulated and monitored by the Securities and Exchange Board of India (SEBI), which strives to protect the interests of investors.

What is the need to regulate different types of mutual funds in India?

Primarily, mutual funds are regulated by the Securities and Exchange Board of India (SEBI). A mutual fund should have the approval of RBI in order to provide a guaranteed returns scheme. The Ministry of Finance acts as a supervisor of RBI and SEBI and appellate authority under SEBI regulations.

Which are the best investment options?

Best Investment Options In India

  • Public Provident Fund (PPF)
  • National Savings Certificate (NSC)
  • Government Bonds.
  • National Pension Scheme (NPS)
  • Sovereign Gold Bonds (SGBs)
  • Equity Mutual Funds.
  • Gold Exchange-Traded Funds (ETFs)
  • Bottom Line.

What is SEBI circular on mutual funds?

SEBI | Circular on Mutual Funds Securities and Exchange Board of India is made for protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto

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How many new fund categories introduced by SEBI in October 2017?

There are many new fund category introduced in existing 36 categories, but were trimmed down to only five schemes mentioned above. Let’s look into the new fund categories introduced by SEBI in October 2017 circular.

What is the role of Securities and Exchange Board of India?

Securities and Exchange Board of India is made for protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto Home Legal Circulars Legal Legal▼ Circular on Mutual Funds

How many types of debt schemes are there according to SEBI?

SEBI has decided total of 16 categories under the debt scheme. 3.Hybrid Schemes: Will include investments in the mixed – equity, debt, and other assets. There are 6 categories under hybrid schemes as defined by SEBI. 4.Solution Oriented Schemes: Will include schemes like children savings or retirement schemes.

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