SEBI Revises Monthly Cumulative Report (MCR) Format for Mutual Funds

📊 AUM Data

• NAUM — Net Assets Under Management (as on last calendar day of month)
• AAUM — Average AUM (aggregate of daily AUM over all calendar days in month)
• Scheme-category wise breakup
• Exclusion of inter-scheme investments to avoid double-counting

👥 Investor/Folio Data

• Total number of investor folios
• Folios by scheme segment (equity, debt, hybrid, etc.)
• Number of active SIP folios
• New folios added during month

💰 Fund Flow Data

• Gross funds mobilised (inflows)
• Repurchase / Redemptions (outflows)
• Net Inflow or Outflow (= Inflows minus Outflows)
• NFO (New Fund Offer) collections where allotment done

📁 Scheme Structure Data

• Number of schemes by type (open-ended, close-ended, interval)
• Category-wise scheme count
• Segregated portfolio data (since 2021)
• Overseas investments (ADR/GDR/ETF) data

During Transition (Until Merger Complete)

Existing Solution-Oriented Scheme AUM reported under a separate "Schemes Under Merger" section — clearly segregated from active categories. No new inflows — redemptions/SIP closures only.

Post-Merger

Post-merger, AUM absorbed by target scheme — reported under the appropriate destination category (Equity/Hybrid/Debt as applicable). Merger month data shown in both source and target scheme rows for transparency.

👥 Who Submits

• All Asset Management Companies (AMCs)
• All Mutual Funds registered with SEBI
• All Trustee Companies
• All Board of Trustees
• AMFI (consolidated industry data)

📅 When to Submit

• The applicable submission timeline should be read from the revised MCR format, annexure, and related SEBI instructions
• Operational teams should identify the first reporting cycle for which the revised template becomes mandatory
• Internal reporting calendars should be updated immediately once the implementation month is confirmed
• Where AMC systems rely on automation, deadline mapping should be tested in advance

📧 How to Submit

• Submitted in the revised format / annexure prescribed by SEBI
• Internal reporting systems should be updated so the format, classifications, and data mapping remain consistent
• Compliance teams should validate the data thoroughly before submission
• Operational instructions should be read directly from the applicable SEBI format and any related implementation guidance

⚠️ Compliance Officer's Role

• Review the revised format and align internal reporting controls accordingly
• Coordinate across operations, finance, IT and scheme-management teams for correct classification and mapping
• Ensure data validation is completed before regulatory submission
• Maintain documentation supporting the first few filings under the revised template

🏢 AMC Compliance Teams — Most Impacted

• Need to review and update MCR generation systems for the revised classification logic
• May need fresh data mapping for newly introduced or reworked scheme categories
• Should test how legacy or transitioning schemes will be reflected in monthly reporting
• Need to align scheme naming and category master data with the revised framework
• Should preserve implementation notes and validation records for audit and regulatory review

📊 SEBI / Analysts / Researchers

• MCR data now tracks Life Cycle Fund adoption — new data series for research
• Clearer picture of FOF re-categorisation impact
• Better monitoring of Solution-Oriented Scheme phase-out progress
• Improved portfolio overlap compliance tracking via scheme-category data
• Enhanced AUM data quality with consistent nomenclature

👥 Investors / Public

• MCR data (published by AMFI) now shows clear split between old and new scheme categories
• Can track how much money is in Life Cycle Funds vs traditional categories
• Easier comparison across AMCs using standardised category names
• Transition data helps investors track their Solution-Oriented Scheme merger status

⚖️ CS / Compliance Officers of AMCs

• Update internal compliance SOPs for MCR preparation
• Coordinate with IT/systems team to upgrade MCR generation software
• Brief Board of Trustees on revised MCR format and implications
• Ensure AMFI-submitted consolidated data reflects each AMC's input accurately
• Maintain documentation of first revised MCR submission for audit trail

Q0   Does the public SEBI circular page itself show the full revised MCR format?

Not necessarily. The circular page confirms the existence of the revision and the basic circular metadata. For exact implementation details, the revised annexure / attached format and related background circulars should also be reviewed before quoting operational specifics in a published note.

Q1   What exactly is the MCR and why should I care about it as a professional?

The Monthly Cumulative Report (MCR) is a long-standing mutual fund reporting format used for regulatory reporting and industry-level data consolidation. For professionals working with AMCs, trustees, compliance, operations, or reporting systems, it matters because changes in the MCR format can require updates to classification logic, internal controls, validation checks, and recurring reporting workflows. The exact submission obligations and certification mechanics should be read from the applicable format, annexure, and related SEBI instructions.

Q2   Why was the MCR revision issued separately from the February 2026 categorisation circular?

A separate MCR revision after a broader categorisation reform is not unusual from a regulatory design perspective. One instrument may change the substantive framework for schemes, while a later instrument updates the reporting template so that supervisory reporting remains aligned with that framework. In this case, the May 2026 circular is best understood as a reporting-format update that should be read together with the February 2026 categorisation changes and the revised annexure.

Q3   How should legacy Solution-Oriented Schemes be understood in the context of the revised MCR?

Because the 2026 categorisation changes affect legacy Solution-Oriented Schemes, the revised MCR may need to reflect transition-related treatment for schemes that are being reclassified, merged, or otherwise moved into the revised framework. The exact way such schemes are shown in monthly reporting should be verified directly from the revised format, annexure, and the relevant background circular rather than assumed from commentary alone.

Q4   What is the NAUM and AAUM methodology and why does it matter for MCR accuracy?

NAUM (Net Assets Under Management) is the AUM as on the last calendar day of the month. For Liquid Funds specifically, purchases made on the first day of the next month are excluded to ensure NAUM reflects end-of-month holdings accurately. AAUM (Average AUM) is the aggregate of daily AUM over all calendar days in the month — including weekends and holidays (using previous day's AUM for non-trading days) — divided by the number of calendar days. The critical rule for both: inter-scheme investments must be excluded. When Scheme A (e.g., a debt fund) invests in Scheme B (e.g., a liquid fund) of the same or another mutual fund, Scheme A must exclude this investment from its AUM. Without this exclusion, the same money is counted twice — once in Scheme A and once in Scheme B — inflating industry-level AUM figures. Compliance officers must ensure their AMC's MCR generation systems correctly implement this exclusion across all schemes.

Q5   If an AMC does not currently have schemes in a newly introduced or revised category, what should it do?

The correct approach should be checked from the revised MCR template and any filing instructions issued with it. In standardised regulatory templates, entities often still use the common format even where a particular row or category is not currently applicable to them, but the exact treatment here should be confirmed from the annexure rather than assumed.

Q6   Is the revised MCR format available for download and how should readers use it?

The SEBI circular page indicates that the MCR format has been revised, and readers should access the circular together with its annexure or attached format from the SEBI website. For article writing, the safest approach is to use the circular page for basic metadata and use the annexure for exact operational details such as the revised fields, category rows, filing structure, and implementation mechanics.