Three important mutual fund rules will be effective from Jan 1 2021
👉New Risk-o-Meter
👉Uniformity of NAV (orders >2lk will get NAV when funds reach AMC)
👉New safeguards wrt Inter Scheme Transfers
Key Highlights: Risk-o-Meter
-New category of 'very high' risk added
-Duration funds to have credit criteria
-Credit funds to have duration criteria
-All schemes to have newly introduced liquidity criteria
-MFs to disclose no of times the risk level has changed over the yr
Key Highlights: Uniform NAV
- Orders below Rs 2 lk (except overnight & liquid) will get NAV on the day that money reaches the AMCs, NOT on the day investor places the order
- this is already in place for orders above 2 lk
Key Highlights: IST
- Close Ended Schemes: IST purchases allowed only within 3 biz days of allotment of NFO
-Open Ended Schemes: IST allowed for meeting redemption-led liquidity requirement
- IST for liquidity mgmt only after other option exhausted
