Sebi Launches Life Cycle Funds: New Era for Long-Term Investing

• Sebi introduces Life Cycle Funds, a new mutual fund category for disciplined, long-term investing.
• These open-ended schemes have pre-determined maturities (5-30 years) and a glide path across multiple asset classes.
• Funds will automatically adjust portfolio mix to align with specific financial goals, becoming more conservative over time.
• A graded exit load structure (3% within 1 year, 2% within 2 years, 1% within 3 years) promotes long-term commitment.
• Replaces existing Solution Oriented Funds (Retirement & Children’s Funds), offering dynamic asset allocation and addressing taxation issues.