In a significant move to streamline long-term financial planning for retail investors, the Securities and Exchange Board of India (SEBI) has introduced a new category of mutual funds: Life Cycle Funds . These funds are designed to automatically adjust their risk profile as an investor approaches a specific target year, offering a "set it and forget it" solution for milestones like retirement or a child’s education. Here is everything you need to know about these new schemes and how they will function. What are Life Cycle Funds? Unlike traditional mutual funds that maintain a consistent investment strategy, Life Cycle Funds are defined by a specific maturity date . As the fund approaches this date, the Asset Management Company (AMC) systematically shifts the portfolio from high-risk, high-reward assets (Equity) to safer, more stable assets (Debt). To ensure transparency, SEBI has mandated that the maturity year must be part of the fund's name for example, "Life Cycle ...
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