Indian two thousand and five hundred rupee banknotes are arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Equity Mutual Funds Classified As Per SEBI’s Categories

The Securities and Exchange Board of India last year asked the mutual fund houses to recategorise by either merging or altering features of their existing schemes to avoid duplication and simplify choice for investors.

The schemes will be classified under five categories:

  • Equity Schemes
  • Debt Schemes
  • Hybrid Schemes
  • Solution-Oriented Schemes
  • Other Schemes

Also read: #BQMutualFundShow: New Equity Mutual Fund Categories Explained Simply

Here’s a list of all equity schemes classified according to their new category by Morningstar

Multi-Cap Funds

  • Minimum investment in equity and equity-related instruments—65 percent of total assets.
  • Invest across large, mid and small-cap stocks.

Large-Cap Funds

  • Minimum investment in equity and equity-related instruments of large-cap companies—80 percent of total assets.
  • Predominantly invest in large-cap stocks.

Large- And Mid-Cap Funds

  • Minimum investment in equity and equity-related instruments of large-cap companies—35 percent of total assets.
  • Minimum investment in equity and equity-related instruments of mid-cap stocks—35 percent of total assets.
  • Invest in large- and mid-cap stocks.
  • Minimum investment in equity and equity-related instruments of mid-cap companies—65 percent of total assets.
  • Predominantly invest in mid-cap stocks.

Mid-Cap Funds

  • Minimum investment in equity and equity-related instruments of mid-cap companies—65 percent of total assets.
  • Predominantly invest in mid-cap stocks.

Small-Cap Funds

  • Minimum investment in equity and equity-related instruments of small-cap companies—65 percent of total assets.
  • Predominantly invest in small-cap stocks.

Dividend-Yield Funds

  • Minimum investment in equity—65 percent of total assets.
  • Scheme should predominantly invest in dividend-yielding stocks.

Value Funds

  • Minimum investment in equity and equity-related instruments—65 percent of total assets.
  • Scheme should follow a value investment strategy.

Contra Funds

  • Minimum investment in equity and equity-related instruments—65 percent of total assets.
  • Scheme should follow a contrarian investment strategy.

Focused Funds

  • Minimum investment in equity and equity-related instruments—65 percent of total assets.
  • A scheme focused on the number of stocks (maximum 30).

Sectoral/Thematic Funds

  • Minimum investment in equity and equity-related instruments of a sector/theme—80 percent of total assets.
  • Scheme should invest in a sector/theme.

ELSS

  • Minimum investment in equity and equity-related instruments—80 percent of total assets.
  • Scheme with a statutory lock-in of three years and a tax benefit.

Also read: SEBI’s Move To Simplify Choice For Mutual Fund Investors Hasn’t Worked