New Equity Mutual Fund Classification by SEBI
New Equity 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
Definition of Large Cap, Mid Cap and Small Cap
1. Large
Cap Funds - 1-100th Company in terms of full Market Capitalization
2. Mid Cap
Funds - 101st-250th Company in terms of full Market
Capitalization
3. Small
Cap Funds - 250th onwards in terms of full Market Capitalization
Equity Scheme Sub Categories
1. Multi
Cap Fund-Minimum investment in equity and equity related instruments-65%of
total assets.
2. Large
Cap Fund-Minimum investment in equity and equity related instruments of large
cap companies-80% of total assets
3. Large
& Mid Cap Fund-Minimum investment in equity and equity related instruments
of large cap companies-35% of total assets. Minimum investment in equity and
equity related instruments of mid cap stocks-35% of total assets.
4. Mid Cap
Fund-Minimum investment in equity and equity related instruments of mid cap
companies-65% of total assets.
5. Small
Cap Fund-Minimum investment in equity and equity related instruments of small
cap companies-65% of total assets.
6. Dividend
Yield Fund-Scheme should predominantly invest in dividend yielding stocks.
Minimum investment in equity-65% of total assets.
7. Value
Fund-Scheme should follow a value investment strategy. Minimum investment in
equity and equity related instruments-65% of total assets.
Contra
Fund-Scheme should follow a contrarian investment strategy. Minimum investment
in equity and equity related instruments-65% of total assets.
8. Focused
Fund-A Scheme focused on the number of stocks (maximum 30). Minimum investment
in equity and equity related instruments-65% of total assets.
9. Sectoral/Thematic
Fund-Minimum investment in equity and equity related instruments of a sector/particular
theme -80% of total assets.
10. ELSS-Minimum
investment in equity and equity related instruments-80% of total assets.
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