New Delhi, Feb. 26 -- The Securities and Exchange Board of India (Sebi) on Thursday announced several changes to the categorisation of mutual fund schemes.

The key changes announced by Sebi in its latest circular include the announcement of life-cycle funds, while solution-oriented funds are being discontinued with immediate effect. Additionally, AMCs can now launch both contra and value mutual funds, provided there is less than 50% overlap between different assets.

The capital markets regulator had released similar circulars in the past, on 6 October 2017 and 6 November 2020.

Life-cycle funds are open-ended funds with predetermined maturity and glide path for goal-based investing, says the circular.

These schemes will invest across v...