Current Affairs · Regulatory Bodies
What is the key objective behind SEBI's 'True-to-Label' proposal for thematic and sectoral equity schemes?
- 1To ensure that portfolio overlap between distinct thematic funds always exceeds 75% for better diversification
- 2To mandate that all sectoral equity mutual fund schemes invest exclusively in large-cap stocks
- 3To allow Asset Management Companies (AMCs) to launch unlimited additional schemes without any regulatory restrictions
- 4To limit the portfolio overlap between a newly launched sectoral/thematic scheme and existing schemes of the same AMC to a maximum of 50%✓
Correct answer
To limit the portfolio overlap between a newly launched sectoral/thematic scheme and existing schemes of the same AMC to a maximum of 50%
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