MUMBAI: The Securities and Exchange Board of India (SEBI) on Thursday discontinued the solution-oriented mutual fund category, which includes children’s and retirement funds, and announced a major overhaul of mutual fund categorisation rules to bring more clarity and transparency for investors.
The markets regulator said that the solution-oriented category stands discontinued from the date of the circular.
Existing schemes under this segment will immediately stop accepting fresh subscriptions.
These schemes will now be merged with other schemes that have similar asset allocation and risk profiles, subject to prior approval from SEBI.
As of January 31, 2026, there were 15 schemes in the children’s fund category and 29 schemes in the retirement fund category.