SEBI has broadly outlined a total of 10 classes of equity schemes that can be issued and all schemes have to necessarily fall into these categories for the purpose of standardization Here are the major categories for equity schemes of mutual funds in India.

Sr.

No.

Category of Schemes

Scheme Characteristics

Type of scheme (uniform description of scheme)

1

Multi Cap Fund

Minimum investment in equity & equity related instruments- 65% of total assets

Multi Cap Fund- An open ended equity scheme investing across large cap, mid cap,

small cap stocks

2

Large Cap Fund

Minimum investment in equity & equity related instruments of large cap companies- 80% of total assets

Large Cap Fund- An open ended equity scheme predominantly investing in

large cap stocks

3

Large & Mid Cap Fund

Minimum 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 assets

Large & Mid Cap Fund- An open ended equity scheme investing in both large cap and mid cap stocks

4

Mid Cap Fund

Minimum investment in equity & equity related instruments of mid cap companies- 65% of total assets

Mid Cap Fund- An open ended

equity scheme predominantly investing in mid cap stocks

5

Small cap Fund

Minimum investment in equity & equity related instruments of small cap companies- 65% of total assets

Small Cap Fund- An open ended equity scheme predominantly investing in

small cap stocks

6

Dividend Yield Fund

Scheme should predominantly invest in dividend yielding stocks. Minimum investment in equity- 65% of total assets

An open ended equity scheme predominantly investing in dividend yielding stocks

7

Value Fund*

Scheme should follow a value investment strategy. Minimum investment in equity & equity related instruments - 65% of total assets

An open ended equity scheme following a value investment strategy

Contra Fund*

Scheme should follow a contrarian investment strategy.

Minimum investment in equity & equity related instruments - 65% of total assets

An open ended equity scheme following contrarian investment strategy

8

Focused Fund

A scheme focused on the number of stocks (maximum 30). Minimum investment in equity & equity related instruments - 65% of total assets

An open ended equity scheme investing in maximum 30 stocks (mention where the scheme intends to focus, viz., multi cap, large cap, mid cap, small cap)

9

Sectoral/ Thematic

Minimum investment in equity & equity related instruments of a particular sector/ particular theme- 80% of total assets

An open ended equity scheme investing in sector (mention the sector)/ An open ended equity scheme following theme (mention the theme)

10

ELSS

Minimum 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

Each AMC is permitted to have just one scheme of any of these except in the case of index funds where they are allowed to hold more than one scheme. You may also want to check the definition of large cap and mid for this purpose and that is also defined by SEBI.

Definition of Large Cap, Mid Cap and Small Cap

In order to ensure uniformity in respect of the investment universe for equity schemes, it has been decided to define large cap, mid cap and small cap as follows:

· Large Cap: 1st -100th company in terms of full market capitalization

· Mid Cap: 101st -250th company in terms of full market capitalization

· Small Cap: 251st company onwards in terms of full market capitalization

Mutual Funds would be required to adopt the list of stocks prepared by AMFI in this regard and AMFI would adhere to the following points while preparing the list:

· If a stock is listed on more than one recognized stock exchange, an average of full market capitalization of the stock on all such stock exchanges, will be computed;

· In case a stock is listed on only one of the recognized stock exchanges, the full market capitalization of that stock on such an exchange will be considered.

· This list would be uploaded on the AMFI website and the same would be updated every six months based on the data as on the end of June and December of each year. The data shall be available on the AMFI website within 5 calendar days from the end of the 6 months period.

Subsequent to any updation in the list, Mutual Funds would have to rebalance their portfolios (if required) in line with updated list, within a period of one month.