More than 100 MF's discontinue multiple schemes from today

Mutual funds will stop accepting fresh investments in over 100 schemes with SIP (Systematic Investment Plan) option, as market regulator Sebi has asked fund houses to move to 'one plan, one scheme' structure.

As per Sebi's guidelines, the single plan structure would apply to all new schemes with effect from today (26^th Oct 2012), while existing schemes with multiple plans (based on investment amount) can accept fresh subscriptions only under one plan.

Among other reforms measures coming into effect today, the fund houses will have to make more disclosures in the interest of investors.

In another benefit for small investors, cash investments of up to Rs. 20,000 per investor, per mutual fund would be allowed every financial year without PAN, but repayment in form of redemptions, dividend or any other form would be paid only through a banking channel.