SEBI has come up with certain guidelines in order to make the process of investing easier for retail investors.
Mutual fund companies have thus renamed and re-categorized their funds in adherence to this instruction.
SEBI has prescribed that every fund company can have only one fund offering under each category.
The following are the benefits that led SEBI to restructure the mutual funds
Benefits of HSBC Mutual Fund Renaming and Re-Categorization
1. In the past, it was hard for retail investors to understand the various categories of funds. With changes in SEBI policies, it has become more simple
2. Through renaming and re-categorization, the categories and number of funds have reduced
3. The expense ratio will also decrease, due to an increased AUM rate per scheme
HSBC Mutual Funds Name and Category Change
| Old Name | New Name | Old Category | New Category |
| HSBC Equity Fund | HSBC Large Cap Equity Fund | Equity-Large Cap | Equity-Large Cap |
| HSBC Flexi Debt Fund | HSBC Flexi Debt Fund | Debt-Income | Debt-Corporate Bond |
| HSBC Income Fund – Investment Plan | HSBC Debt Fund | Debt-Income | Debt-Medium to Long Duration |
| HSBC Income Fund – Short Term Plan | HSBC Short Duration Fund | Debt-Short Term | Debt-Short Duration |
| HSBC Infrastructure Equity Fund | HSBC Infrastructure Equity Fund | Equity-Sector | Equity-Sectoral/Thematic |
| HSBC Midcap Equity Fund | HSBC Small Cap Equity Fund | Equity-Mid Cap | Equity-Small Cap |
| HSBC Monthly Income Plan | HSBC Regular Savings Fund | Debt-MIP | Hybrid-Conservative |
HSBC Mutual Fund Names and Categories Which Did Not Change
| Old Name | New Name | Old Category | New Category |
| HSBC Cash Fund | HSBC Cash Fund | Debt-Liquid | Debt-Liquid |
| HSBC Dynamic Fund | HSBC Dynamic Fund | Equity-Large Cap | Equity-Large Cap |
| HSBC Dividend Yield Equity Fund | HSBC Dividend Yield Equity Fund | Equity-Large Cap | Equity-Large Cap |
| HSBC India Opportunities Fund | HSBC India Opportunities Fund | Equity-Multi Cap | Equity-Multi Cap |
| HSBC Tax Saver Equity Fund | HSBC Tax Saver Equity Fund | Equity-Tax – ELSS | Equity-ELSS |
What Should You do if the Fund Has Been Renamed and Re-Categorized?
1. Renamed
if the fund has only been renamed, then you need not worry. You may keep investing as you were before
2. Renamed and Re-Categorized
Here’s where you need to pay attention.
If the fund category changes, it means the investment strategy might also change. Hence, you need to modify your investment, so that it can sync with the characteristics of the new category.
3. Merged
Again, if the funds are merged, you need not worry, the Asset Management Company will take care of it.
Happy Investing!
Disclaimer: The views expressed here are that of the author and do not reflect those of Groww.
