Mutual Fund News for May 2026
Global fund SIPs launched for retail investors
Investment platform Vested has introduced systematic investment plans (SIPs) for global funds, enabling investors to allocate fixed amounts periodically instead of placing manual lump-sum orders.
The offering, launched in December 2025, provides access to international strategies managed by leading asset managers such as Fidelity Investments, Franklin Templeton, Morgan Stanley, and JPMorgan Chase.
The move is expected to simplify global diversification for Indian investors by promoting disciplined investing and reducing timing risks associated with overseas markets.
SEBI revises lock-in rules for pledged shares
The Securities and Exchange Board of India has introduced a new mechanism for handling lock-in requirements of pledged shares in public issues.
Under the revised framework, depositories can now mark such shares as “non-transferable” when conventional lock-in mechanisms cannot be applied. The change follows amendments to the ICDR Regulations, 2018, aimed at streamlining IPO processes.
Issuers will need to update their Articles of Association, inform lenders, and disclose relevant details in offer documents. The move is expected to enhance transparency and compliance in capital market transactions.
SEBI launches AI-driven cybersecurity platforms
The Securities and Exchange Board of India has rolled out three new IT platforms to strengthen cybersecurity and regulatory efficiency.
These include SUPCOMS for unified communication, an e-adjudication portal for digital legal proceedings, and Cyber-Sec Audit Compliance (C-SAC), an AI-enabled system to analyse cyber audit reports.
C-SAC will generate risk scores, identify compliance gaps, and support risk-based supervision of regulated entities. The initiative aims to enhance transparency, reduce manual processes, and build a strong digital audit trail across interactions.
SBI Mutual Fund files for Rs. 13,500 crore IPO
SBI Mutual Fund has filed draft papers for its much-anticipated initial public offering, expected later this year.
The IPO will involve stake sales by its sponsors, State Bank of India and Amundi, who plan to divest 6.3% and 3.7% holdings respectively.
The issue is expected to raise around Rs. 13,500 crore, making it one of the largest offerings in the asset management space. Several leading investment banks have been appointed to manage the transaction.
SEBI eases fundraising norms for social enterprises
The Securities and Exchange Board of India has introduced key relaxations to strengthen the Social Stock Exchange (SSE) framework and improve fundraising avenues for not-for-profit organisations (NPOs).
Under the revised norms, NPOs can now remain registered on SSEs for up to three years without raising funds, compared to the earlier limit of two years. This extension provides greater flexibility for organisations to prepare and structure fundraising initiatives effectively.
Additionally, the regulator has reduced the minimum subscription requirement for Zero Coupon Zero Principal (ZCZP) instruments from 75% to 50% in cases where projects remain viable with partial funding. However, this relaxation applies only where outcomes can be implemented on a clearly identifiable unit basis.
The reforms aim to deepen social impact investing and enhance capital access for mission-driven organisations.
Kotak MF launches dynamic multi-asset FoF
Kotak Mutual Fund has launched the Kotak Multi Asset Active Fund of Fund (FoF), aimed at simplifying asset allocation for investors through a diversified investment approach.
The scheme will dynamically invest across equity, debt, and commodity-based instruments, with allocation ranges of 10–80% in equity and hybrid schemes, 10–60% in debt funds, and 10–30% in commodity exchange-traded funds.
The fund seeks to address common investor challenges such as overtrading or maintaining poorly diversified portfolios. By offering automated asset allocation, rebalancing, and scheme selection within a single structure, it aims to deliver disciplined investing outcomes.
The product also reflects the growing demand for flexible investment solutions that adapt to changing market conditions while reducing the need for constant portfolio monitoring by investors.
SEBI cracks down on Rs. 2,950 crore Ponzi-like scheme
The Securities and Exchange Board of India has uncovered a Rs. 2,950 crore Ponzi-like network and imposed a penalty of Rs. 1 crore on Tradez Investment Pvt Ltd for regulatory violations.
The regulator found that the entity allegedly misused its stockbroking licence to attract investors by promising fixed monthly returns of 10–12%. Funds were routed through multiple interconnected entities, while investors were shown fabricated dashboards displaying fictitious profits. Initial withdrawals were allowed to build trust before funds were later blocked or diverted.
SEBI noted that the broker had negligible genuine trading activity and failed to act despite multiple complaints of misuse of its name.
The case highlights increasing risks of fraudulent schemes exploiting regulatory credentials and underscores the need for stronger investor awareness and due diligence.
Invesco MF launches Sensex, Nifty Bank index funds
Invesco Mutual Fund has introduced two new passive investment schemes tracking key market indices, expanding its offerings in the index fund segment.
The Invesco India BSE Sensex Index Fund and the Invesco India Nifty Bank Index Fund are designed to replicate the performance of their respective benchmarks through investments in constituent stocks in similar weightages.
These open-ended schemes aim to provide investors with low-cost exposure to India’s core equity market and the banking sector. The fund house will seek to minimise tracking error while maintaining close alignment with benchmark performance.
The new fund offers are currently open for subscription and will close on May 7, offering investors an opportunity to participate in passive investing strategies amid growing interest in index-based products.
PSU mutual funds see Rs. 4,498 crore outflow in March
Public sector mutual funds recorded an outflow of Rs. 4,498 crore in March, improving from Rs. 5,389 crore in February, according to a report by Vallum Capital.
Despite the continued outflows, the total assets under management (AUM) of PSU funds stood at Rs. 47,896 crore. Performance remained resilient, with these funds delivering 3.7% returns in the past month and strong double-digit gains over longer periods. Over three, five, and ten years, returns stood at 30.8%, 28.7%, and 18.2%, respectively.
Sector-wise trends indicate a shift in investor preference. While consumption, auto, technology, BFSI, and ESG themes witnessed outflows, fresh inflows were seen in manufacturing, infrastructure, defence, and pharma sectors.
The data suggests a clear pivot towards domestic capex and healthcare-driven themes as investors realign portfolios for 2026 growth opportunities.
Mutual fund SIP inflows hit record Rs. 32,087 crore in March
Systematic Investment Plan (SIP) inflows in mutual funds surged to an all-time high of Rs. 32,087 crore in March, marking an 8% increase from Rs. 29,845 crore in February, according to industry data.
On a year-on-year basis, inflows rose 24% from Rs. 25,925 crore recorded in March 2025, reflecting growing investor participation. SIP assets reached Rs. 15.1 lakh crore, accounting for over 20.5% of the total mutual fund AUM. The number of contributing SIP accounts climbed to nearly 9.72 crore.
The consistent inflows highlight sustained confidence in long-term wealth creation through disciplined investing. Equity mutual funds also extended their streak to 61 consecutive months of net inflows, indicating continued investor preference for equities despite market volatility.
The trend underscores India’s strong structural growth outlook and the increasing adoption of systematic investing among retail investors.
Axis MF launches Nifty India Defence Index Fund
Axis Mutual Fund has launched the Axis Nifty India Defence Index Fund, an open-ended scheme designed to track the Nifty India Defence Total Return Index (TRI).
The new fund offer will open on April 10 and close on April 24, providing investors with a low-cost, passive investment option in the defence sector. The fund will replicate the underlying index by investing in companies involved in aerospace, defence equipment, shipbuilding, explosives, and related services.
The index follows a rules-based approach with free-float market capitalisation weighting and semi-annual rebalancing, ensuring transparency and discipline.
The launch aligns with increasing investor interest in defence as a long-term structural theme, supported by rising global defence spending, India’s modernisation push, and strong policy focus on domestic manufacturing and exports.
