All Types of Mutual Funds Explained
- December 8, 2021
- Posted by: MvM Team
- Category: Mutual Funds
To facilitate a proper distinction between mutual funds and to bring uniformity among similar scheme categories, SEBI decided to categorize mutual funds as follows:
Equity Schemes: (10 Schemes)
Category | Characteristics |
Multi Cap Fund | Minimum investment in equity & related instruments- 65% of total assets. |
Large Cap Fund | Minimum investment in equity & related instruments of large cap companies- 80% of total assets. |
Large & Mid Cap Fund | Minimum investment in equity & related instruments of large cap and mid cap companies- 35% each of total assets |
Mid Cap Fund | Minimum investment in equity & related instruments of mid cap companies- 65% of total assets. |
Small Cap Fund | Minimum investment in equity & related instruments of small cap companies- 65% of total assets. |
Dividend Yield Fund | Scheme should 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 & related instruments – 65% of total assets. |
Contra Fund | Scheme should follow a contrarian investment strategy. Minimum investment in equity– 65% of total assets |
Focused Fund | A scheme focused on the number of stocks (maximum 30) Minimum investment in equity– 65% of total assets. |
Sectoral/ Thematic | Minimum investment in equity & related instruments of a sector/ particular theme- 80% of total assets. |
ELSS | Minimum investment in equity– 80% of total assets |
Debt Schemes: (16 Schemes)
Schemes | Characteristics |
Overnight Fund | Investment in overnight securities having maturity of 1 day. |
Liquid Fund | Investment in Debt and money market securities with maturity of up to 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 up to 1 Year. |
Short Duration Fund | Investment in Debt & Money Market instruments such that the Macaulay duration of the portfolio is 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: (6 Schemes)
Schemes | Characteristics |
Conservative Hybrid Fund. | Investment in equity - between 10% and 25% of total assets. Investment in debt instruments-between 75% and 90% |
Balanced Hybrid Fund | Equity & related instruments- between 40% and 60% of total assets. Debt instruments – between 40% and 60% of total assets. |
Aggressive Hybrid Fund | Equity & related instruments- between 65% and 80% of total assets. Debt instruments- between 20%-35% of total assets. |
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 & related instruments- 65% of total assets. . |
Equity Savings | Minimum investment in equity - 65% of total assets Minimum investment in debt- 10% of total assets. |
Solution Oriented Schemes: (2 Schemes)
Schemes | 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 reaches age of majority whichever is earlier. |
Other Schemes: (2 Schemes)
Schemes | Characteristics |
Index Funds/ ETFs. | Minimum investment in securities of a particular index (which is being replicated/ tracked) - 95% of total assets. |
Fund of Fund (FoFs) | Minimum investment in the underlying fund - 95% of total assets. |
