A mutual fund is a mechanism for merging the resources insecurities by issuing units to the investors and investing funds with objectives as disclosed in offer document. They are issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unitholders.
According to the market trends, any reasonable fund managers can change the asset allocation. It can be done on a short-term basis on considerations. Though the mutual fund wants to change the asset allocation on a permanent basis, they are required to inform the unitholders.