AMFI to appeal SEBI about stopping retirement and children’s MF
AMFI to appeal SEBI about stopping retirement and children’s MF
Intends to highlight the challenges regarding the investment schemes
Venkat Chalasani, Chief Executive, the Association of Mutual Funds in India (AMFI), has stated conducting a representation before the Securities and Exchange Board of India (SEBI) on the proposal to discontinue retirement and children’s mutual fund (MF).
Recently, SEBI directed asset management companies (AMCs) to stop inflows into solution-oriented schemes (retirement funds and children’s funds) with immediate effect.
However, on AMFI’s request, it subsequently allowed investments in the schemes until 31 March 2026.
Chalasani said, “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.”
AMFI intends to highlight the concerns of investors and AMCs on the sudden closure of the two categories. These jointly manage over Rs.57,000 crore and currently comprise 41 funds having over 6.2 million folios.
The market regulator had 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. SEBI believes it would cater to similar long-term investment opportunities.
