New overlapping limits and lifecycle funds
From now on, sectoral/thematic equity schemes can only overlap up to 50% with other equity schemes (except large-cap), and value and contra funds can overlap up to 50% with each other.
AMCs have three years to get in line—reducing overlaps bit by bit each year.
Plus, SEBI is introducing lifecycle funds that shift from equity to debt as you get closer to your goal, investing across debt, equity, gold/silver ETFs, and InvITs.
Solution-oriented schemes will be merged into similar options
Solution-oriented schemes like retirement or children’s funds are being phased out and merged into similar options after SEBI approval.
With this change, leftover investments will include things like gold/silver instruments and InvITs—giving your portfolio a little more variety while making categories clearer for everyone.