Category # 1: Equity schemes:
| S. No. | Category | Scheme characteristics/minimum conditions |
| 1 | Multi-Cap Fund | Invest across large-cap, mid-cap, small-cap stocks
Min. equity component – 65% |
| 2 | Large Cap Fund | Predominantly invest in large-cap stocks
Min. equity component – 80% |
| 3 | Large and Mid-Cap Fund | Invest in both large-cap and mid-cap stocks
Min. equity component (large-cap stocks) – 35% Min. equity component (mid-cap stocks) – 35% |
| 4 | Mid Cap Fund | Predominantly invest in mid-cap stocks
Min. equity component (mid-cap stocks) – 65% |
| 5 | Small Cap Fund | Predominantly invest in small-cap stocks
Min. equity component (small-cap stocks) – 65% |
| 6 | Dividend Yield Fund | Predominantly invest in dividend-yielding stocks
Min. equity component – 65% |
| 7 | Value Fund | The scheme should follow a value investment strategy
Min. equity component – 65% |
| 8 | Contra Fund | The scheme should follow a contrarian investment strategy.
Min. equity component – 65% |
| 9 | Focussed Fund | Maximum 30 stocks
Min. equity component – 65%AMC to mention where the scheme intends to focus, viz., Multi-cap, large-cap, mid-cap, small-cap) |
| 10 | Sectoral/Thematic Fund | AMC to clearly mention the sector/theme that the scheme shall focus on
Min. equity component (for stocks belonging to that sector/theme) – 80% |
| 11 | Equity Linked Savings Schemes (ELSS) | The statutory lock-in period of 3 years
Min. equity component – 80% (per Equity Linked Saving Scheme, 2005, as notified by the Ministry of Finance) |
Note: Mutual Funds will be permitted to offer either Value fund or Contra fund
Category # 2: Debt schemes:
| S. No. | Category | Scheme characteristics/minimum conditions |
| 1 | Overnight Fund | Invest in overnight securities – Maturity of 1 day |
| 2 | Liquid Fund | Invest in debt and money market instruments – Maturity of up to 91 days |
| 3 | Ultra-short Duration Fund | Invest in Debt & Money Market instruments – Macaulay duration of the portfolio to be between 3 – 6 months |
| 4 |
Low Duration Fund |
Invest in Debt & Money Market instruments – Macaulay duration of the portfolio to be between 6 – 12 months |
| 5 | Money Market Fund | Invest in Money Market instruments – Maturity up to 1 year |
| 6 | Short Duration Fund | Invest in Debt & Money Market instruments – Macaulay duration of the portfolio to be between 1-3 years |
| 7 | Medium Duration Fund | Invest in Debt & Money Market instruments – Macaulay duration of the portfolio to be between 3 – 4 years |
| 8 | Medium to Long Duration Fund | Invest in Debt & Money Market instruments – Macaulay duration of the portfolio to be between 4-7 years |
| 9 | Long Duration Fund | Invest in Debt & Money Market instruments – Macaulay duration of the portfolio to be more than 7 years |
| 10 | Dynamic Bond | Investment across duration |
| 11 | Corporate Bond Fund | Minimum 80% investment in corporate bonds (only in highest rated instruments |
| 12 | Credit Risk Fund | Minimum 65% investment in corporate bonds (below highest rated instruments) |
| 13 | Banking and PSU Fund | Minimum 80% investment in Debt instruments of banks, Public Sector Undertakings, Public Financial Institutions |
| 14 | Gilt Fund | Minimum 80% investment in Government Securities (across maturity) |
| 15 | Gilt Fund with 10-year constant duration | Minimum 80% investment in Government Securities (so that the Macaulay duration of the portfolio is equal to 10 years) |
Note: For fund categories mentioned in pts. 3 to 9 above, the AMC has to mention the page number of the offer document where the concept of “Macaulay duration” is explained.
Category # 3: Hybrid Schemes
| S. No. | Category | Scheme characteristics/minimum conditions |
| 1 | Conservative Hybrid Fund | Minimum equity component – Between 10% and 25%
Minimum debt component – Between 75% and 90% |
| 2a | Balanced Hybrid Fund | Minimum equity component – Between 40% and 60%
Minimum debt component – Between 40% and 60% The AMC cannot do any arbitrage in this scheme |
| 2b | Aggressive Hybrid Fund | Minimum equity component – Between 65% and 80%
Minimum debt component – Between 20% and 35% |
| 3 | Dynamic Asset Allocation (or
Balanced Advantage) |
Invest in equity or debt – AMC to manage it dynamically |
| 4 | Multi-Asset Allocation | Invests in at least three asset classes with a minimum allocation of at least 10% each in all three asset classes
Note: AMC cannot offer foreign securities as a foreign asset class |
| 5 | Arbitrage Fund | The scheme should follow an arbitrage strategy.
Minimum equity component – 65% |
| 6 | Equity Savings | Minimum equity component – 65%
Minimum debt component – 10% AMC to state minimum hedged & unhedged in the Scheme Information Document (SID) AMC to state Asset Allocation under defensive considerations in the Offer Document |
Note: Mutual Funds can offer either an Aggressive Hybrid fund or a Balanced fund
Category # 4: Solution-Oriented Schemes:
| S. No. | Category | Scheme characteristics/minimum conditions |
| 1 | Retirement Fund | Lock-in: At least 5 years or till retirement age, whichever is earlier |
| 2 | Children’s Fund | Lock-in: At least 5 years or till the child attains the age of majority, whichever is earlier |
Category # 5: Other Schemes:
| S. No. | Category | Scheme characteristics/minimum conditions |
| 1 | Index Funds/ Exchange Traded Funds | Minimum 95% investment in securities of a particular index (which is being replicated/ tracked)
AMC to mention the name of the index |
| 2 | Fund of Funds (Overseas/ Domestic) | Minimum 95% investment in the underlying fund
AMC to mention the name of the underlying fund |
Conclusion
