SEBI Introduces Life Cycle Funds, Ends Solution Schemes
Securities and Exchange Board of India Overhauls Mutual Fund Categorisation Framework; Introduces Life Cycle Funds, Tightens Portfolio Overlap Norms Mumbai, February 26, 2026: In a sweeping reform aimed at strengthening investor protection and ensuring “true-to-label” mutual fund offerings, the Securities and Exchange Board of India (SEBI) has issued a comprehensive circular revising the categorisation and rationalisation framework for mutual fund schemes. The new circular supersedes Clause 2.6 of the Master Circular dated June 27, 2024, and introduces structural changes across equity, debt, hybrid, Fund of Funds (FoFs), and a newly formalised Life Cycle Fund category. The changes come into force with immediate effect, with existing schemes required to comply within six months. 🔹 Broad Classification of Schemes SEBI has retained and refined five broad categories: Equity Schemes Debt Schemes Hybrid Schemes Life Cycle Funds (new detailed structure introduced) Other Schemes (FoFs and...


