Every mutual fund category, explained
SEBI defines what each category may hold, which is why two large-cap funds are more alike than a large-cap and a flexi-cap. Each page below says what the rule is, who the category suits, how long money should stay, and lists the funds ranked within it.
Large CapFunds that must keep at least 80% in India's 100 biggest listed companies.Mid CapAt least 65% in companies ranked 101st to 250th by market value.Small CapAt least 65% in companies ranked 251st and below.Flexi CapAt least 65% in equity, with no limit on where across large, mid and small.Multi CapAt least 25% each in large, mid and small caps — the split is mandatory.Large & Mid CapAt least 35% in large caps and 35% in mid caps.FocusedA maximum of 30 stocks, at least 65% in equity.Value / ContraAt least 65% in equity, following a value or contrarian strategy.Dividend YieldAt least 65% in equity, predominantly in high dividend-yielding stocks.ELSS (Tax Saving)At least 80% in equity, with every investment locked for three years.Sectoral — EnergyAt least 80% in one sector.Sectoral / ThematicAt least 80% in one sector or theme.Index FundsTrack an index, holding its constituents in its proportions.Aggressive Hybrid65–80% equity, the rest in debt.Balanced AdvantageEquity and debt moved dynamically, by a model.Conservative Hybrid75–90% debt, 10–25% equity.Balanced Hybrid40–60% equity, the rest in debt, with no arbitrage.Equity SavingsEquity, arbitrage and debt together.Multi Asset AllocationAt least 10% each in three asset classes.ArbitrageBuying in the cash market and selling in futures, capturing the spread.Retirement FundsSolution-oriented, with a five-year lock or until retirement.Liquid FundsDebt maturing within 91 days.Overnight FundsDebt maturing in a single day.Ultra Short DurationPortfolio duration of 3 to 6 months.Low DurationPortfolio duration of 6 to 12 months.Money MarketMoney-market instruments maturing within a year.Short DurationPortfolio duration of 1 to 3 years.Medium DurationPortfolio duration of 3 to 4 years.Long DurationPortfolio duration above 7 years.Dynamic BondDuration moved actively across the whole range.Corporate BondAt least 80% in the highest-rated corporate debt.Banking & PSUAt least 80% in debt of banks, PSUs and public financial institutions.Credit RiskAt least 65% in debt rated AA and below.Gilt FundsAt least 80% in government securities.Fund of FundsInvests in other mutual funds.