If you too are planning to invest in Mutual funds, then there is big news for you. The market regulator SEBI (SEBI) has placed a limit on the investment limit in debt (Mutual Funds) with special features.
New Delhi: If you are also planning to invest in Mutual Funds, then there is big news for you. The market regulator SEBI (SEBI) has placed a limit on the investment limit in debt (Mutual Funds) with special features. That is, now you cannot spend more money than the limit. According to a circular issued by SEBI, Mutual Funds will now be able to invest only 10% of their Assets Under Management (AUM) in such debt (Debt) with special features.
SEBI said that it will include Additional Tier 1 (AT 1) and Additional Tier 2 (AT2) bonds. Explain that AUM is money that investors invest with mutual fund houses to invest.
According to the circular, the side pocketing facility is available , mutual funds will not be able to invest more than 5% of their assets in the single issuer’s debt. Apart from this, Mutual Funds with investment will also be able to do side pocketing in the scheme. Also, if there is a bad date of any kind, then you can make a different pocket, which is called side pocketing. Tell us
what is the benefit of side pocketing
, through this pocket, investors get a window to exit from the remaining part of the scheme and the date in which there is a chance of recovery does not have any effect on it.
be applicable from April 1
SEBI made it clear that the investments already above this limit will continue to operate and this new rule will be applicable only on fresh investments from April 1, 2021. Let us tell you that AT1 and AT2 bonds are also called perpetual, because they have no fixed maturity date.
