SEBI re-categorized mutual fund schemes in 2017 to bring uniformity across fund houses and make investing easier for investors. The document outlines the various types of mutual fund schemes in India, including equity schemes, debt schemes, hybrid schemes, and solution oriented schemes. Equity schemes invest primarily in stocks and are further divided into 11 categories like large-cap, mid-cap, small-cap funds. Debt schemes invest in fixed income instruments and money market securities across 16 categories based on maturity and credit risk. Hybrid schemes combine equity and debt assets, and solution oriented schemes have lock-in periods tailored for retirement or children.

1. SCHEMES OF MUTUAL FUNDS
Presented By: Sheetal Goel
Course: MBA

2. Equity Schemes
Debt Schemes
Hybrid Schemes
Solution Oriented
Schemes
Other Schemes

3. REGULATORY
BODY.
 SEBI had announced the re-categorisation of mutual
fund schemes on October 6, 2017.
 It was done to bring uniformity as mutual fund houses
had launched several mutual fund schemes.
 Investing in mutual funds is quite easy after this move,
as investors put money in mutual fund schemes that
match their investment objectives and risk tolerance.

4. Equity Funds
An equity fund is a mutual fund scheme that invests predominantly in
equity stock. Equity funds invest at least 65% of the total assets in equity
and equity-related instruments. It may invest the remaining corpus in debt
and money market instruments.
SEBI has categorized equity funds into eleven broad categories:
1. Large Cap Fund:
It invests at least 80% of the total assets in equity and equity-
related instruments of large-cap companies.
2. Large & Mid Cap Fund:
It invests 35% of the total assets in equity and equity-related
instruments of large-cap companies. It also invests 35% of total
assets in equity and equity-related instruments of mid-cap firms.
3. Mid Cap Fund:
It invests at least 65% of the total assets in equity and equity-
related instruments of mid-cap companies.

5. 4. Small Cap Fund:
It invests at least 65% of the total assets in equity and
equity-related instruments of small-cap companies.
5. Multi Cap Fund:
It invests a minimum of 65% of the total assets in equity and
equity-related instruments.
6. Dividend Yield Fund:
It invests mainly in dividend-yielding stocks and has a
minimum of 65% of the total assets in equity.
7. Value Fund:
It follows a value investment strategy and has at least 65% of
the total assets in equity.
8. Contra Fund:
It follows a contrarian investment strategy and has at least
65% of total assets in equity and equity-related instruments.

6. 9. Focused Fund:
It focuses on a maximum of 30 stocks. It has at least 65% of total
assets in equity and equity-related instruments.
10. Sectoral /Thematic Fund:
It invests a minimum of 80% of total assets in equity and equity-
related instruments of a particular sector or a particular theme.
11. ELSS:
It invests a minimum of 80% of total assets in equity and equity-
related instruments (In accordance with Equity Linked Saving
Scheme, 2005 notified by the Ministry of Finance).
Investments in an ELSS qualify for tax deductions under
Section 80C of the Income Tax Act within the overall limit of 1.5
lakh. The amount you invest in ELSS is deducted from your
taxable income, which helps you lower the amount of income tax
you are liable to pay. Investments in ELSS are subject to a
three-year lock-in period.

7. Debt Funds
A debt fund is a mutual fund scheme that invests in fixed income
instruments, such as Corporate and Government Bonds, corporate debt
securities, and money market instruments etc. Debt funds are ideal for
investors who want regular income, but are risk-averse. Debt funds are
less volatile and, hence, are less risky than equity funds.
SEBI has categorized debt funds into sixteen broad categories:
1. Overnight Fund: It invests in overnight securities with maturity of one
day.
2. Liquid Fund: It invests in debt and money market securities with a
maturity of up to 91 days.
3. Ultra Short Duration Fund: It invests in debt and money market
instruments where the Macaulay duration of the portfolio is between
three months to six months.

8. 4. Low Duration Fund: It invests in debt and money market
instruments where the Macaulay duration of the portfolio is
between six months to twelve months.
5. Money Market Fund: It invests in money market instruments with a
maturity of up to one year.
6. Medium Duration Fund: It invests in debt and money market
instruments where the Macaulay duration of the portfolio is
between three years to four years.
7. Medium to Long Duration Fund: It invests in debt and money
market instruments where the Macaulay duration of the portfolio is
between four years to seven years.
8. Long Duration Fund: It invests in debt and money market
instruments where the Macaulay duration of the portfolio is above
seven years.

9. 9. Dynamic Fund: It invests across duration.
10. Corporate Bond Fund : It invests at least 80% of the total assets in
corporate bonds of the highest rating.
11. Credit Risk Fund: It invests at least 65% of total assets in corporate
bonds.
12. Banking and PSU Fund: It invests a minimum of 80% of total assets in
debt instruments of banks, PSUs and Public Financial Institutions.
13. Gilt Fund: It invests a minimum of 80% of total assets in G-secs across
maturity.

10. Hybrid Funds
Hybrid funds put money in more than one asset class. It may be a
combination of equity, debt and even a small proportion in gold.
SEBI has categorised hybrid funds into seven broad categories:
1. Conservative Hybrid Fund:
It invests between 10% and 25% of the total assets in equity and
equity-related instruments. It invests between 75% to 90% of the
total assets in debt instruments.
2. Balanced Hybrid Fund:
It invests between 40% and 60% of the total assets in equity and
equity-related instruments. It invests between 40% to 60% of the
total assets in debt instruments. No arbitrage is allowed in this
scheme.
3. Aggressive Hybrid Fund:
It invests between 65% and 80% of the total assets in equity and
equity-related instruments. It invests between 20% to 35% of the
total assets in debt instruments.

11. 4. Dynamic Asset Allocation or Balanced Advantage:
It invests in equity or debt that is managed dynamically.
5. Multi-Asset Allocation:
It invests in a minimum of three asset classes with an allocation of
at least 10% each in all three asset classes.
6. Arbitrage Fund:
It invests a minimum of 65% of total assets in equity and equity-
related instruments. The scheme follows an arbitrage strategy.
7. Equity Savings:
It invests a minimum of 65% of total assets in equity and equity-
related instruments. It invests a minimum of 10% of total assets in
debt instruments.

12. Solution Oriented Funds
The solution-oriented funds have been further divided into following 2
sub-categories i.e. retirement fund and children’s fund. These funds will
have a lock-in period of at least 5 years.
SEBI has categorised solution oriented funds into two broad categories:
1. Retirement Fund:
You may fund these schemes having a lock-in of at least five years
or till the retirement age, whichever is earlier.
2. Children’s Fund:
The scheme would have a lock-in of at least five years or till the
child attains majority age whichever comes earlier.

13. REFERENCES
 https://www.amfiindia.com/investor-
corner/knowledge-center/what-are-mutual-
funds-new.html
 https://www.sebi.gov.in/legal/circulars/oct-
2017/categorization-and-rationalization-of-
mutual-fund-schemes_36199.html
 https://groww.in/p/types-of-mutual-funds/