The Association of Mutual Funds in India (Amfi) will make a representation to the Securities and Exchange Board of India (Sebi) regarding the regulator’s proposal to discontinue retirement and children’s mutual fund (MF) categories, Amfi Chief Executive Venkat Chalasani said on Monday.
The representation will highlight the concerns of investors and asset management companies arising from the sudden closure of the two scheme categories, which together manage over Rs 57,000 crore. These solution-oriented schemes currently comprise 41 funds and have more than 6.2 million folios.
Sebi, on February 26, had directed asset management companies (AMCs) to stop inflows into solution-oriented schemes — retirement funds and children’s funds — with immediate effect. However, the market regulator has subsequently allowed investments in these schemes until March 31, 2026, on Amfi’s request.
Sebi has proposed merging retirement and children’s funds with other schemes having a similar asset allocation and risk profile. The proposal is part of a broader plan to introduce a new category of life-cycle funds, which the regulator believes can cater to similar long-term investment goals.
“Sebi is of the opinion that the life-cycle fund will address both the retirement and the children’s fund categories. However, we have conveyed the industry concerns and highlighted that there could be certain challenges,” Chalasani said.
