Here are the top three rules which have favored debt mutual funds in recent past that you must know:
Portfolio and yield disclosure norms: In partial modification of SEBI circular on ’Monthly portfolio disclosures’, Sebi mandated mutual funds to disclose the schemes’ current portfolio every 15 days instead on a monthly basis. "In addition to the current portfolio disclosure, yield of the instrument shall also be disclosed," said Sebi in its July circular.
The disclosure of yields of each instrument in the portfolio will help investors to know the quality of the portfolio and understand the level of risk taken by the scheme to a better extent.
Sebi also notified exit load on liquid debt funds for redemptions within 7 days to deter corporates from using liquid funds to park their money for very short periods. Big purchases and redemptions from corporates can amplify the risk in these funds for retail investors.