In April 2018, SEBI came up with guidelines in order to simplify the process of investing for retaiL investors,

All mutual fund companies have hence re-named and re-categorized their funds with abidance to the SEBI regulations.

In fact, this move was appreciated by the investing community, as it had various advantages.

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Advantages of IDBI Mutual Fund renaming and re-categorization

1. The categories and number of funds have reduced and thus the process of investing has become easier

2. It is hard for common investors to understand the various categories of mutual funds and understand how they work. Through the SEBI policy change, the process has become more simple

3. Since the number of schemes have decreased, the AUM has increased, which means, the expense ratio has decreased.

IDBI Mutual Fund renaming and re-categorization

 Old Name  New Name Old – Category   New – Category
IDBI Corporate Debt Opportunities Fund IDBI Credit Risk Fund Debt-Income
Debt-Credit Risk
IDBI Diversified Equity Fund IDBI Diversified Equity Fund Equity-Diversified
Equity-Multi Cap
IDBI Dynamic Bond Fund IDBI Dynamic Bond Fund Debt-Income
IDBI Focused 30 Equity Fund IDBI Focused 30 Equity Fund Equity-Diversified
IDBI Gilt Fund IDBI Gilt Fund Gilt-Short Term Debt-Gilt
IDBI Gold Fund IDBI Gold Fund Gold-Fund of Funds
Others-FoF Domestic
IDBI India Top 100 Equity Fund IDBI India Top 100 Equity Fund Equity-Large Cap
Equity-Large Cap
IDBI Midcap Fund IDBI Midcap Fund Equity-Diversified
Equity-Mid Cap
IDBI Monthly Income Plan IDBI Equity Savings Fund Debt-MIP
Hybrid-Equity Savings
IDBI Small Cap Fund IDBI Small Cap Fund Equity-Small Cap
Equity-Small Cap
IDBI Ultra Short Term Fund IDBI Ultra Short Term Fund Debt-Ultra Short Term Debt-Ultra Short Duration
IDBI Nifty Junior Index Fund IDBI Nifty Junior Index Fund Equity-Index Others-Index
IDBI Prudence Fund IDBI Hybrid Equity Fund Balanced-Balanced
IDBI Short Term Bond Fund IDBI Short Term Bond Fund Debt-Short Term
Debt-Short Duration

IDBI Mutual Fund names and categories which did not change

 Old Name  New Name   Old – Category  New – Category
IDBI Equity Advantage Fund IDBI Equity Advantage Fund Equity-Tax – ELSS Equity-ELSS
IDBI Liquid Fund IDBI Liquid Fund Debt-Liquid Debt-Liquid

What should you do if the fund has been renamed and re-categorized?

1. If it has been renamed

If the blog has been renamed, you need not worry about your investments. You may continue as before.

2. If it has been re-categorized

This is where you need to pay attention.

If your fund has been re-categorized, you will have to change your investment strategy to keep in sync with the new category’s terms.

3. If the fund has been merged

You do not need to fret if the fund has been merged. The asset management company or AMC will take care of it.

Happy Investing!

Disclaimer: The views expressed in this post are that of the author and not those of Groww



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