Mumbai, Feb. 27 -- The Securities and Exchange Board of India has introduced a detailed regulatory framework for Life Cycle Funds as part of its revised categorisation and rationalisation norms for mutual fund schemes.

Definition and structure

Life Cycle Funds are defined as open-ended funds with a target date maturity following a glide path strategy and investing across various asset classes, including equity, debt, InvITs, ETCDs, Gold ETFs and Silver ETFs.

These schemes must follow the asset allocation structure. The framework specifies relatively higher permissible equity exposure in the earlier years to maturity. As the scheme approaches maturity, the permissible equity exposure reduces, with corresponding allocation ranges for deb...