AMCs may reclassify existing multi-cap mutual funds as focussed schemes: Should you be worried?

There is increased investor interest in focused funds now, especially after Sebi’s recent rule change regarding multicap funds. According to the new rules, all multi-cap funds should invest at least 25% each in large, mid and small cap segments and the deadline to make this shift is 31 January 2021. However, there is no segmental restriction on focused funds. Therefore, some fund houses may reclassify their existing multi-cap funds as focussed