Mumbai, Feb. 27 -- Market regulator Securities Exchange Board of India or SEBI has introduced another new category of mutual funds called the life cycle fund. SEBI said that life cycle funds will have a minimum duration of five years and a maximum duration of 30 years. Asset management companies can now introduce mutual fund schemes investing in debt instruments of companies in specific sectors. A sectoral fund would have a minimum investment of 80% in debt and debt related instruments of a particular sector across duration. The investment would be listed only in corporate bonds with a credit rating of more than AA+.

SEBI has scrapped the solution-oriented schemes category and tightened disclosure and portfolio-overlap norms as part of a...