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List of new fund categories

According to SEBI's fund reclassification system, there are 36 different open-ended schemes now. Here are the names and definitions


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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

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*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
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