In a landmark move aimed at enhancing investor understanding and ensuring uniformity across the mutual fund industry, the Securities and Exchange Board of India (SEBI) has directed all Asset Management Companies (AMCs) to align the names of their equity schemes with SEBI’s categorization norms by June 30, 2025.
This reform is designed to eliminate ambiguity caused by creative naming conventions and to ensure that a scheme’s name reflects its actual investment strategy and risk profile.
What’s Changing?
Many mutual fund schemes in India currently use marketing-driven names such as “Bluechip,” “Opportunities,” or “Discovery,” which often mislead or confuse retail investors. SEBI’s new directive mandates that fund names must directly reflect the SEBI-defined categories, such as:
Large Cap Fund
Mid Cap Fund
Value Fund
Focused Fund
Flexi Cap Fund
Examples of Renamed Schemes:
| Old Name | New Name |
|---|---|
| Axis Bluechip Fund | Axis Large Cap Fund |
| HDFC Mid Cap Opportunities Fund | HDFC Mid Cap Fund |
| ICICI Prudential Value Discovery Fund | ICICI Prudential Value Fund |
Objective Behind the Move
SEBI’s core intent is to bring transparency, simplicity, and standardization to mutual fund scheme nomenclature. This change ensures:
Improved Comparability: Investors can easily compare funds within the same category.
Reduced Mis-selling Risk: Misleading names that do not reflect actual asset allocation or strategy will be removed.
Better Decision-Making: Investors can align fund selection with their financial goals and risk appetite more effectively.
What Investors Should Do
Investors are not required to take any immediate action. However, we recommend:
Reviewing AMC Notifications: Stay updated on the changes shared by fund houses.
Understanding the Category: Focus on what the fund invests in, not just the name.
Consulting Advisors: Discuss how these changes may impact your current portfolio allocations.
RURASH Financials’ Perspective
At RURASH Financials, we strongly support SEBI’s investor-first approach. This initiative is aligned with our mission to empower clients with transparent and compliant investment solutions.
We offer:
Portfolio review to align with renamed schemes
Fund category reclassification insights
Risk profile assessments for new investments
Proactive advisory for future SEBI-driven changes
Final Word
SEBI’s scheme renaming directive marks a decisive step toward demystifying mutual fund investing in India. While the name changes may appear minor, the impact on investor clarity and industry integrity is substantial.
For personalized support in adapting your portfolio to these changes, or to explore better-aligned mutual fund options, connect with RURASH Financials your partner in transparent, goal-oriented investing.