Equity Schemes

SEBI has decided a total of 11 categories under Equity Schemes but a mutual fund company can only have 10 categories and it has to choose between Value or Contra. Still, 10 categories look a bit high but I think it’s fair considering the possible variations in the strategy. To make this easier SEBI has also defined the meaning of Large Cap, Mid Cap, and Small Cap.

  • Large Cap: Top 100 companies in terms of market capitalization
  • Mid Cap: 101st- 250th companies in term of market capitalization
  • Small Cap: 251st company onwards in terms of market capitalization
1Multi-Cap Funds Minimum investment in equity & equity related instruments–65% of total assetsMulti-Cap Fund – An equity mutual fund investing across Large Cap, Mid Cap, Small Cap stocks
2Large Cap FundsMinimum investment in equity & equity related instruments of large-cap companies – 80% of total assetsLarge Cap Fund – An equity mutual fund predominantly investing in Large Cap stocks
3Large & Mid Cap FundsMinimum 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 assetsLarge & Mid-Cap Fund – An open-ended equity mutual fund investing in both large-cap and mid-cap stocks
4Mid Cap FundsMinimum investment in equity & equity related instruments of mid-cap companies – 65% of total assetsMid Cap Fund – An equity mutual fund predominantly investing in Mid Cap stocks
5Small-Cap FundsMinimum investment in equity & equity related instruments of small-cap companies – 65% of total assetsSmall Cap Fund – An equity mutual fund predominantly investing in Small Cap stocks
6Dividend Yield FundsThe scheme should predominantly invest in dividend-yielding stocks. Minimum investment in equity – 65% of total assetsAn equity mutual fund predominantly investing in dividend-yielding stocks
7aValue Funds*The scheme should follow a value investment strategy. Minimum investment in equity & equity related instruments – 65% of total assetsAn equity mutual fund following a value investment strategy
7b Contra Funds*The scheme should follow a contrarian investment strategy. Minimum investment in equity & equity related instruments – 65% of total assetsAn equity mutual fund following a contrarian investment strategy
8 Focused FundsA scheme focused on the number of stocks (maximum 30) Minimum investment in equity & equity related instruments – 65% of total assetsAn equity scheme investing in a maximum of 30 stocks (mention where the scheme intends to focus, viz., multi-cap, large-cap, mid-cap, small-cap)
9 Sectoral Funds or ThematicMinimum investment in equity & equity related instruments of a particular sector/particular theme – 80% of total assetsAn open-ended equity scheme following the theme as mentioned
10 ELSS FundsMinimum investment in equity & equity related instruments – 80% of total assets (in accordance with Equity Linked Saving Scheme, 2005 notified by Ministry of Finance)An open-ended equity-linked saving scheme with a statutory lock-in of 3 years and tax benefit

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