In early 2026, SEBI rolled out updates to mutual fund disclosure rules aimed at improving investor transparency. The changes are quiet but meaningful for anyone analyzing funds before buying.
Monthly portfolio disclosure moved to fortnightly
AMCs previously disclosed full portfolios on a monthly basis, typically with a 10-day lag. From April 2026, the disclosure frequency doubles to fortnightly, with a 5-day lag. This means you can see what your fund holds twice as often and much closer to real time. For investors using tools like our overlap calculator, this means the data driving your comparisons is fresher.
Standardized risk-o-meter
The risk-o-meter system was updated with stricter calculation rules. Previously, AMCs had some latitude in how they categorized risk levels; now the methodology is fixed and risk is calculated monthly rather than quarterly. Expect some funds to visibly move one step up or down on the risk scale in coming months.
True-to-label for sector funds
Sebi tightened the definition of what a "technology fund" or "banking fund" can hold outside its stated theme. The cap on off-theme exposure dropped from 20% to 10% for most thematic funds, forcing managers to stay closer to their stated focus. This is good news for investors who want honest thematic exposure without drift.
Expense ratio caps for new NFO
New fund offers now face stricter caps on the first-year expense ratio to prevent launch-period fee gouging. The caps are tied to AUM tiers, with the smallest funds still allowed higher ratios to fund research.
What it means for you
For most retail investors, these changes happen in the background. The practical benefit: better information hygiene for fund analysis, stricter adherence to fund categories, and more honest labeling. When you compare funds on our explorer, you can trust the category data more than before.
What's next
SEBI has signaled that direct listing of AMCs and standardized KPI dashboards for fund performance may come in FY27. The regulator seems committed to pushing the mutual fund industry toward US-grade transparency — a long overdue upgrade.