Mid & small cap mutual funds: Regulators took these 4 steps to protect investors from high valuations

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Key Points

As per AMFI data released for January 2024, the number of folios for mid-cap funds has reached 1.33 crores, and for small-cap funds has reached 1.78 crores..

AMFI has asked the Trustees of all AMCs to put in place a policy to protect the interests of investors in mid and small-cap schemes..

As per reports, SEBI has asked AMCs to take steps to restrict fund flows into mid and small-cap mutual fund schemes..

Some other AMCs may also take steps to restrict the inflow of funds in the mid and small-cap schemes in the coming days...

AMFI has asked AMCs to disclose risk parameters related to mid and small-cap mutual fund schemes on their website..

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