Only condition is that Focused category should have Max 30 stocks. For eg. Parag Parikh (PPFAS) Long Term Equity Fund may change category to Focused as their portfolio mostly has less than 30 stocks. Some AMCs (like Mirae Asset AMC) are not impacted by this development as they don't have any scheme in Multi cap Category Should Direct Equity Investor Jump to Mid and Small cap stocks..? Social media is flooded with messages on opportunity in Mid and Small cap stocks and lists of 'Best Small cap stocks to invest" J There may be some reshuffling, irrespective of what AMCs plan of action is. The opportunity in Mid and Small cap is still a grey area. Depending upon the option I or II above selected by the AMCs there maybe opportunity in stocks. If option I above is selected by AMCs, they shall divest Large cap and invest in Mid and Small cap to rebalance the existing allocation.