NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Scheme Related Information
Under SEBI's categorisation, which of the following is correct for a Multi Cap Fund?
A Multi Cap Fund must invest at least 75% of assets in equity and related instruments, with a minimum of 25% each in large cap, mid cap and small cap stocks. The remaining portion is flexible within the scheme's mandate.
- AMinimum 65% in equity, with no split across market capitalisation
- BMinimum 75% in equity, with at least 25% each in large cap, mid cap and small cap stocksCorrect
- CMinimum 80% in large cap stocks and the rest in cash
- DMinimum 75% in equity, with at least 10% each in large, mid and small cap stocks
Explanation
SEBI's revised norms require a Multi Cap Fund to hold at least 75% of total assets in equity and equity-related instruments, with a minimum of 25% each in large cap, mid cap and small cap stocks. The 10% split and 65% minimum are not the rule.
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