New Solution Oriented and Other Mutual Fund Classification by SEBI
New Solution
Oriented and Other Mutual Fund Classification by SEBI
On October 2017, Securities and Exchange
Board of India (SEBI) released a new circular to rationalize and categorize the
Mutual Funds in India. The main aim of the circular is to standardize the
scheme of all the categories. There are 36 sub categories under the main
categories (Equity, Debt, Hybrid, Solution Oriented and other).
According to the circular “Mutual Fund
Categorization and Rationalization”, the categories as follows.
Equity Schemes-investment in equity and equity
related instruments
Debt Schemes-investment in debt instruments
Hybrid Schemes-investment in a mix of equity,
debt and other assets
Solution Oriented Schemes-retirement or
children savings scheme
Other Schemes-Index Funds, Fund of Funds and
ETFs
Solution Oriented and Other Scheme Sub
Categories
Solution Oriented Schemes
1. Retirement
Fund-Scheme having a lock-in for at least 5 Years or till retirement age
whichever is earlier.
2. 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
1. Index
Funds/ETFs- Minimum investment in securities of a particular index (which is
being replicated /tracked)-95% of total assets.
2. FOFs(Overseas/Domestic)-Minimum
investment in the underlying fund-95% of total assets
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