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.

Invest in direct mutual funds

  • Enjoy 0% commission
  • SIP starting at ₹500

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 NameOld – Category  New – Category
IDBI Corporate Debt Opportunities FundIDBI Credit Risk FundDebt-Income
Debt-Credit Risk
IDBI Diversified Equity FundIDBI Diversified Equity FundEquity-Diversified
Equity-Multi Cap
IDBI Dynamic Bond FundIDBI Dynamic Bond FundDebt-Income
IDBI Focused 30 Equity FundIDBI Focused 30 Equity FundEquity-Diversified
IDBI Gilt FundIDBI Gilt FundGilt-Short TermDebt-Gilt
IDBI Gold FundIDBI Gold FundGold-Fund of Funds
Others-FoF Domestic
IDBI India Top 100 Equity FundIDBI India Top 100 Equity FundEquity-Large Cap
Equity-Large Cap
IDBI Midcap FundIDBI Midcap FundEquity-Diversified
Equity-Mid Cap
IDBI Monthly Income PlanIDBI Equity Savings FundDebt-MIP
Hybrid-Equity Savings
IDBI Small Cap FundIDBI Small Cap FundEquity-Small Cap
Equity-Small Cap
IDBI Ultra Short Term FundIDBI Ultra Short Term FundDebt-Ultra Short TermDebt-Ultra Short Duration
IDBI Nifty Junior Index FundIDBI Nifty Junior Index FundEquity-IndexOthers-Index
IDBI Prudence FundIDBI Hybrid Equity FundBalanced-Balanced
IDBI Short Term Bond FundIDBI Short Term Bond FundDebt-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 FundIDBI Equity Advantage FundEquity-Tax – ELSSEquity-ELSS
IDBI Liquid FundIDBI Liquid FundDebt-LiquidDebt-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

Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.