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India's Fund Rules Get Major Overhaul

Summary

  • New mutual fund categorisation rules introduced by India's regulator.
  • New categories include contra funds and sectoral debt funds.
  • Existing schemes must be aligned with new rules within six months.
India's Fund Rules Get Major Overhaul

India's markets regulator introduced substantial changes to mutual fund categorisation rules on Thursday, February 26, 2026.

These updated regulations establish new fund categories, including contra funds and sectoral debt funds. Additionally, goal-based life cycle funds have been incorporated into the framework.

Asset managers are mandated to ensure all their existing schemes comply with these new categorisation rules within a six-month period. This overhaul aims to bring greater clarity and structure to the mutual fund landscape.

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