SEBI has mandated that fund houses cap portfolio overlap between sectoral or thematic funds and other equity schemes at 50%, with three years to comply. The regulator says the rule will improve diversification and stop investors from unknowingly owning duplicate stocks across multiple funds. Wealth managers add that individuals should also check their own holdings for overlap.
More Indian investors are moving beyond domestic markets, chasing diversification and global innovation as local returns lag. New investing platforms have made overseas access smoother, while a weaker rupee has improved the appeal of foreign assets. Growth is visible in global feeder funds and rising overseas equity allocations, signaling a lasting reallocation trend.
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