Just days after the Securities and Exchange Board of India (Sebi) announced a new category of equity funds — the Flexi Cap Fund — Motilal Oswal Asset Management Company on Monday said it would be reclassifying its “Motilal Oswal Multicap 35 Fund” from the multi cap fund category to a flexi cap fund.

It thus becomes the first fund house to switch after the market regulator allowed the sector to convert their existing multi cap schemes into flexi cap where they will not be mandated to invest a specific portion of funds into large cap, small cap and medium cap companies.

“The proposed name of the fund could be ‘Motilal Oswal Flexi Cap 35 Fund’. There would be no change in the way the fund is being managed currently and Akash Singhania will continue to be the fund manager as well,’’ a statement from the fund house said.

While multi-cap schemes had total assets under management of Rs 1.45 lakh crore, it is expected that more fund houses will convert these schemes into the new category.

The main investment objective of the Motilal Oswal Multicap 35 scheme was to achieve long term capital appreciation by primarily investing in a maximum of 35 equity and equity-related instruments across sectors and market capitalisation.