New Delhi, March 13 -- The Indian market regulator's decision to discontinue solution-oriented schemes such as education and retirement funds offered by mutual fund houses has left Rs.57,664 crore of investor money in limbo, with uncertainty over what will happen to the investments.

For 28-year-old investor Nandish Dholakia in Gujarat, the investment was never meant to be tactical-it had a destination. Almost a year ago, he started investing in an SBI Children's Fund for his niece's education, drawn by a structure that locked the money away from the temptations of market timing. That certainty has now evaporated following the decision of the Securities and Exchange Board of India (Sebi).

"Sebi is arguing that AMCs (asset management comp...