New Mutual Fund Rules 2025: SEBI’s Big Shift to Match India’s Evolving Investment Trends
Mumbai, July 21, 2025: India’s capital markets regulator, the Securities and Exchange Board of India (SEBI), has unveiled a draft of new mutual fund rules aimed at modernizing the sector. These New Mutual Fund Rules reflect the rapidly changing investment environment and are designed to offer more flexibility to both investors and fund houses.
Key Changes in the New Mutual Fund Rules
1. AMCs May Launch Both Value and Contra Funds
Under current regulations, Asset Management Companies (AMCs) are restricted to launching either a Value Fund or a Contra Fund—not both. The new mutual fund rules propose removing this restriction, allowing fund houses to offer both strategies. SEBI acknowledges that while both styles may seem similar, they differ in philosophy and execution.
2. Equity Funds May Invest Up to 35% in Other Assets
In a significant departure from the norm, SEBI has proposed that equity mutual funds be allowed to allocate up to 35% of their portfolio to other asset classes, such as:
- Debt Instruments (Bonds, NCDs, etc.)
- Gold ETFs and Silver ETFs
- REITs (Real Estate Investment Trusts)
- InvITs (Infrastructure Investment Trusts)
This move under the New Mutual Fund Rules 2025 could help diversify risk while improving returns for investors.
3. Greater Innovation in Index Funds & ETFs
SEBI has also recommended relaxing certain norms on index funds and ETFs, allowing AMCs to design more innovative products. These could include customized indices and broader market trackers, making passive investing more appealing to a wider audience.
Why These New Mutual Fund Rules Matter
The proposed changes are designed to:
- Offer more diversified investment avenues
- Allow AMCs to cater to different investor profiles
- Enhance transparency and reduce overlap between categories
- Align Indian mutual fund regulations with global best practices
As per Livemint’s mutual fund coverage, these moves are expected to boost investor confidence and offer more product innovation in the coming years.
SEBI Invites Public Comments
SEBI has opened the floor for public and stakeholder feedback on these proposed mutual fund rule changes. Investors, fund managers, and experts can send their comments by August 8, 2025. Once finalized, the New Mutual Fund Rules will be implemented in phases.
What Should Investors Do Now?
With the landscape potentially shifting, here’s how investors can prepare:
- Stay informed: Monitor updates from SEBI and financial news portals
- Consult financial advisors: Understand how the rule changes impact your existing mutual fund holdings
- Evaluate new fund types: Once launched, assess value, contra, and hybrid funds for long-term suitability
For in-depth guides, comparison tools, and tax-saving strategies related to mutual funds, visit Wealthlook.com.
Disclaimer: This article is for informational purposes only. Please consult a SEBI-registered advisor before making investment decisions.
