So you are looking for which Multicap funds have become Flexicap Funds?
SEBI had recently introduced a new mutual fund category – Flexi cap Funds. This had come as a major relief to investors and fund managers, who were planning to recategorize their existing multi-cap funds to other categories in light of the rule change for multi-cap funds.
Unlike Flexi-cap funds that have the freedom to invest across market caps as long as they keep at least 65% of the portfolio invested in equities, the multi-cap funds have to adhere to 25-25-25 rule of keeping 25% each in large-cap stocks, mid-cap stocks and small-cap stocks. Read more about Flexicap Funds Vs Multicap Funds.
SEBI’s announcement of the new category has provided an easy way out for the existing multicap funds to reclaim their freedom (to invest across market caps) by shifting to the new flexi-cap category.
As of now, the following major multicap funds have announced that they will reclassify themselves as Flexi-cap funds:
- Kotak Standard Multicap Fund will become a flexicap fund and renamed as Kotak Standard Flexi cap Fund
- Parag Parikh Long Term Equity Fund will become a flexicap fund
- Motilal Oswal Multicap 35 Fund will become a flexicap fund and renamed as Motilal Oswal Flexi Cap 35 Fund
In the new Flexi-cap category, there are no market-cap wise allocation rules and hence, fund managers will have the flexibility and the investors would rely on the fund managers ability and discretion to decide market cap allocations within the fund’s portfolio.
These are some of the existing multi-cap funds which are expected to reclassify themselves as Flexi-cap funds soon:
- Kotak Standard Multicap Fund
- HDFC Equity Fund
- UTI Equity Fund
- Axis Focused 25 Fund
- Motilal Oswal Multicap 35 Fund
- Aditya Birla Sun Life Equity Fund
- SBI Focused Equity Fund
- SBI Magnum Multicap Fund
- Franklin India Equity Fund
- Nippon India Multi Cap Fund
- Franklin India Focused Equity Fund
- Axis Multicap Fund
- ICICI Prudential Multicap Fund
- Parag Parikh Long Term Equity Fund
- IDFC Multi Cap Fund
- DSP Equity Fund
- Nippon India Focused Equity Fund
- Mirae Asset Focused Fund
- Canara Robeco Equity Diversified Fund
- L&T Equity Fund
- DSP Focus Fund
- Tata Multicap Fund
- Kotak Focused Equity Fund
- Nippon India Retirement Fund
- IDFC Focused Equity Fund
- Tata Focused Equity Fund
- HDFC Retirement Savings Fund Equity Plan
- IIFL Focused Equity Fund
- Invesco India Multicap Fund
- Tata Retirement Savings Fund – Progressive Plan
- Baroda Multi Cap Fund
- ICICI Prudential Focused Equity Fund
- L&T Focused Equity Fund
- Invesco India Focused 20 Equity Fund
- Principal Multi Cap Growth Fund
- Sundaram Equity Fund
- Edelweiss Multi Cap Fund
- HSBC Focused Equity Fund
- BNP Paribas Multi Cap Fund
- HDFC Focused 30 Fund
- Principal Focused Multicap Fund
- Union Multi Cap Fund
- Mahindra Manulife Multi Cap Badhat Yojana
- UTI Children’s Career Fund-Investment Plan
- HSBC Multi Cap Equity Fund
- PGIM India Diversified Equity Fund
- LIC MF Multicap Fund
- Aditya Birla Sun Life Bal Bhavishya Yojna – Wealth Plan
- IDBI Diversified Equity Fund
- Taurus Starshare (Multi Cap) Fund
- Union Focused Fund
- BNP Paribas Focused 25 Equity Fund
- Essel Multi Cap Fund
- Aditya Birla Sun Life Retirement Fund – The 30s Plan
- ITI Multi Cap Fund
- JM Multicap Fund
- Quant Active Fund
- ICICI Prudential Retirement Fund – Pure Equity Plan
- Motilal Oswal Nifty 500 Fund
- Shriram Multicap Fund
- BOI AXA Multi Cap Fund
- Quantum Equity FoF Fund
- ICICI Prudential India Equity FOF
Most multi-cap funds are expected to may get their schemes reclassified in to Flexi cap category. And if not all, then all the major ones with sufficiently large AUMs are expected to take the reclassification route. Sebi has given a deadline of 31st January 2021 to mutual fund houses to comply with the multi-cap allocation rules.
A shift to the flexicap category means no change to the fundamental characteristics, investment strategy and process for the scheme that were till now part of the multicap category. The only change will be the name of the scheme.
So that’s it. These are the Multi Cap Funds that will be renamed and reclassified as Flexi Cap Funds.