Media reports that the Securities and Exchange Board of India’s (SEBI) chairman said that SEBI is considering the reclassification of mid cap and small cap mutual fund schemes such that they have a wider set of stocks to select from. The categorization step undertaken by SEBI in 2017 has lowered the flexibility for investing as it defines the investment universe of mutual funds beyond which the fund manager cannot allocate money. This was done to bring uniformity and accurate fund comparison. However, according to some fund managers, the move has impacted fund performance.