SEBI's new mutual fund rules aim for clearer, simpler choices
SEBI is planning a major update to mutual fund rules, aiming to make things simpler and more transparent for investors.
The changes are designed to help you understand your options better, cut down on repetitive funds, and open the door for more creative investment choices.
Public feedback is open until August 8, 2025.
What's in the proposal?
If a fund house already has a large, established scheme in one category (over five years old and ₹50,000 crore+ in assets), they'll be allowed to launch another in the same space—so less crowding and overlap.
Plus, most mutual funds could soon invest in things like REITs (real estate) and InvITs (infrastructure)—though some categories like Dynamic Asset Allocation and Arbitrage Funds won't be included.
SEBI aims to introduce 'life cycle' funds
SEBI also wants to introduce "life cycle" funds that lock in your money for big goals like retirement or buying a home.
These would automatically shift your investments from higher-risk equity toward safer debt as you get closer to your goal.
Why the overhaul is needed
This overhaul updates rules from 2020 so mutual funds can keep up with how fast the industry is growing.
It means more choice, clearer categories, and investments that fit real-life needs—a move SEBI hopes will make investing feel less confusing and more useful for everyone.