Types of Mutual Fund Schemes
Master the complete SEBI categorization of mutual fund schemes — equity, debt, hybrid, and passive funds. Understand the current 36-category framework and the upcoming 40-category expansion effective April 2026. Essential for recommending the right fund to every client.
SEBI Categorization — From 36 to 40 Categories
SEBI's Mutual Fund Categorization and Rationalization circular (October 6, 2017) originally classified all mutual fund schemes in India into 36 catego...
Equity Funds — Large Cap, Mid Cap, Small Cap, Flexi Cap, Multi Cap
Under SEBI categorization, equity mutual funds based on market capitalization are classified into five distinct categories: Large Cap Fund (minimum 80...
Equity Funds — Value, Contra, Dividend Yield, Focused
Under SEBI categorization, strategy-based equity funds include: Value Fund (follows a value investment strategy), Contra Fund (follows a contrarian in...
Equity Funds — Sectoral & Thematic, ELSS
Under SEBI categorization, Sectoral Funds invest a minimum of 80% in equity and equity-related instruments of a specific sector (e.g., banking, pharma...
Debt Funds — Overnight, Liquid, Ultra-Short, Low Duration
Under SEBI categorization, short-duration debt fund categories include: Overnight Fund (invests in securities maturing in 1 day), Liquid Fund (invests...
Debt Funds — Medium, Long Duration, Dynamic Bond, Gilt
Under SEBI categorization, medium-to-long duration debt fund categories include: Medium Duration Fund (Macaulay duration 3-4 years), Medium to Long Du...
Hybrid Funds — Conservative, Balanced, Aggressive, Dynamic Asset Allocation
Hybrid funds are mutual fund schemes that invest in a combination of two or more asset classes — typically equity and debt, but sometimes also gold, R...
Solution-Oriented Funds — Retirement & Children's Fund
Solution-Oriented Funds were mutual fund schemes designed for specific financial goals — primarily retirement planning and children's education or mar...
Index Funds & ETFs — The Passive Revolution
Index Funds and Exchange-Traded Funds (ETFs) are passively managed mutual fund products that aim to replicate the performance of a specific market ind...
Fund of Funds & International Funds
A Fund of Funds (FoF) is a mutual fund scheme that invests in units of other mutual fund schemes — either domestic or international — rather than dire...
Choosing the Right Category for Your Client
Category selection is the process of matching a mutual fund scheme category to an investor's specific requirements based on their risk tolerance, inve...
SEBI Categorization — Impact & Practical Tips for Distributors
SEBI's mutual fund categorization and rationalization framework was originally implemented through a circular dated October 6, 2017, mandating that ev...
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