Widely read:
Here's the complete list of open-ended fund categories (and their definitions) SEBI has established as part of its reclassification exercise. However, please note that the Value Research Fund Classification System has slightly deviated from this list. To know why we have done so and what are the deviations, read this article.
Equity Schemes
| Category | Scheme Characteristics |
| Multi Cap Fund | Minimum investment in equity & equity related instruments- 65% of total assets |
| Large Cap Fund | Minimum investment in equity & equity related instruments of large cap companies- 80% of total assets |
| Large & Mid Cap Fund | Minimum investment in equity & equity related instruments of large cap companies- 35% of total assets Minimum investment in equity & equity related instruments of mid cap stocks- 35% of total assets |
| Mid Cap Fund | Minimum investment in equity & equity related instruments of mid cap companies- 65% of total assets |
| Small cap Fund | Minimum investment in equity & equity related instruments of small cap companies- 65% of total assets |
| Dividend Yield Fund | Scheme should predominantly invest in dividend yielding stocks. Minimum investment in equity- 65% of total assets |
| Value Fund* | Scheme should follow a value investment strategy. Minimum investment in equity & equity related instruments - 65% of total assets |
| Contra Fund* | Scheme should follow a contrarian investment strategy. Minimum investment in equity & equity related instruments - 65% of total assets |
| Focused Fund | A scheme focused on the number of stocks (maximum 30). Minimum investment in equity & equity related instruments - 65% of total assets. Funds will mention where the scheme intends to focus, viz.,multi cap, large cap, mid cap, small cap |
| Sectoral/ Thematic | Minimum investment in equity & equity related instruments of a particular sector/ particular theme- 80% of total assets |
| ELSS | Minimum investment in equity & equity related instruments - 80% of total assets. An open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit |
*Mutual funds will be permitted to offer either Value fund or Contra fund
Debt Schemes
| Category | Scheme Characteristics |
| Overnight Fund | Investment in overnight securities having maturity of 1 day |
| Liquid Fund | Investment in Debt and money market securities with maturity of upto 91 days only |
| Ultra Short Duration Fund | Investment in Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 3 months - 6 months |
| Low Duration Fund | Investment in Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 6 months- 12 months |
| Money Market Fund | Investment in Money Market instruments having maturity upto 1 year |
| Short Duration Fund | Investment in Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 1 year - 3 years |
| Medium Duration Fund | Investment in Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 3 years - 4 years |
| Medium to Long Duration Fund | Investment in Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 4 - 7 years |
| Long Duration Fund | Investment in Debt & Money Market Instruments such that the Macaulay duration of the portfolio is greater than 7 years |
| Dynamic Bond | Investment across duration |
| Corporate Bond Fund | Minimum investment in corporate bonds- 80% of total assets (only in highest rated instruments) |
| Credit Risk Fund | Minimum investment in corporate bonds- 65% of total assets (investment in below highest rated instruments) |
| Banking and PSU Fund | Minimum investment in Debt instruments of banks, Public Sector Undertakings, Public Financial Institutions- 80% of total assets |
| Gilt Fund | Minimum investment in Gsecs- 80% of total assets (across maturity) |
| Gilt Fund with 10 year constant duration | Minimum investment in Gsecs- 80% of total assets such that the Macaulay duration of the portfolio is equal to 10 years |
| Floater Fund | Minimum investment in floating rate instruments- 65% of total assets |
Hybrid Schemes
| Category | Scheme Characteristics |
| Conservative Hybrid Fund | Investment in equity & equity related instruments- between 10% and 25% of total assets; Investment in Debt instruments- between 75% and 90% of total assets |
| Balanced Hybrid Fund* | Equity & Equity related instruments- between 40% and 60% of total assets; Debt instruments- between 40% and 60% of total assets. No arbitrage would be permitted in this scheme |
| Aggressive Hybrid Fund* | Equity & Equity related instruments- between 65% and 80% of total assets; Debt instruments- between 20% 35% of total assets |
| Dynamic Asset Allocation or Balanced Advantage | Investment in equity/ debt that is managed dynamically |
| Multi Asset Allocation # | Invests in at least three asset classes with a minimum allocation of at least 10% each in all three asset classes |
| Arbitrage Fund | Scheme following arbitrage strategy. Minimum investment in equity & equity related instruments- 65% of total assets |
| Equity Savings | Minimum investment in equity & equity related instruments- 65% of total assets and minimum investment in debt- 10% of total assets. Minimum hedged & unhedged to be stated in the SID. |
| Mutual Funds will be permitted to offer either an Aggressive Hybrid fund or Balanced fund. #Foreign securities will not be treated as a separate asset class |
|
Solution-Oriented Schemes
| Category | Scheme Characteristics |
| Retirement Fund | Scheme having a lock-in for at least. 5 years or till retirement age whichever is earlier |
| Children's Fund | Scheme having a lock-in for at least 5 years or till the child attains age of majority whichever is earlier |
Other Schemes
| Category | Scheme Characteristics |
| Index Funds/ ETFs | Minimum investment in securities of a particular index (which is being replicated/ tracked)- 95% of total assets |
| FoFs (Overseas/ Domestic) | Minimum investment in the underlying fund- 95% of total assets |
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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