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Fincash » Mutual Funds » New Mutual Fund Categories by SEBI

A Guide to SEBI's New Mutual Fund Categorisation

Updated on September 15, 2021 , 4023 views

On 6th October, 2017, SEBI (Securities and Exchange Board of India) announced the re-categorization and re-rationalized of Mutual Fund schemes. The primary purpose of this was to bring uniformity between schemes offered by Mutual Fund Houses.

SEBI intends to make Mutual Fund Investments easier for the investors. Investors should be able to easily understand schemes as per their investment objectives, needs and risk appetite. In the current scenario, there are a number of schemes of the same type within the AMC, which creates lot of confusion for the investors during fund selection. The new classification will clearly define the schemes, along with its allocations, etc.

SEBI has classified 10 categories in Equity Funds, 16 categories in debt funds, six in hybrid funds and two each in solution-oriented scheme and other fund groups.

Equity Funds

SEBI has categorised equity mutual funds into 10 broad categories. In its rule, SEBI has redefined large-cap, mid-cap and Small cap funds:

Large-caps

First 100 companies on full market capitalisation basis

Mid-caps

All companies from 101st to 250th on full market capitalisation basis

Small-caps

All other companies from 251st onwards on full market capitalisation basis

As per the new rules, large-cap schemes should invest at least 80 percent of their total assets in large-cap stocks. Mid-cap and small-cap funds should invest minimum 65 percent of its total assets in the mid & small cap stocks.

Multi-cap fund, Value/contra fund, focused fund should invest at least 65 percent of its total assets in their equities. Equity Linked Saving Schemes (ELSS) and Thematic/Sector should invest minimum 80 percent of its assets in equities.

New-Equity-Fund-Categories-by-SEBI

Debt Funds

SEBI has categorised debt funds into 16 broad categories. The classification of debt schemes is based on Macaulay duration, maturity and credit ratings. Macaulay duration is a measure of how the price of a bond will change in response to movement in interest rates.

As per SEBI, the medium duration funds will invest in debt and money market instruments such that Macaulay duration of the portfolio is between three to four years. In medium duration funds, the portfolio Macaulay duration under adverse situation is one to four years.

The medium to long duration fund will invest debt and money market securities such that the Macaulay duration of the portfolio is between four to seven years. Under the adverse situation, the portfolio Macaulay duration is one to seven years.

Overnight funds, Liquid Funds, Money market funds, Gilt Funds are classified under maturity based funds.

Corporate Bonds would be allowed to invest in AA+ and above-rated instruments. The Credit Risk Funds can invest in AA and below rated instruments, excluding AA+ rated instruments.

The other schemes added by SEBI are the Banking and PSU Fund, which will invest about 80 percent of its investment in PSUs, public sector banks, etc., and Floater Fund that will invest about 65 percent in floating rate instruments.

New-Debt-Fund-Categories-by-SEBI

Hybrid Funds

SEBI has introduced five categories to Hybrid Funds. These are the funds that will invest in both debt and equity funds. SEBI has set a particular allocation for these schemes. The Conservative Hybrid Fund would invest 10-25 percent in equities and 75-90 percent in debt instruments. A fund house can only offer either Balanced Hybrid Fund or Aggressive Hybrid Fund.

The Multi Asset Allocation Fund can invest in at least three asset classes with a minimum allocation of 10 percent each in three asset classes. Arbitrage Fund can invest 65 percent of total assets in equities. Equity Savings can invest a minimum of 65 percent in equities and 10 percent in debt assets.

Investment in debt/equity can be dynamically managed for Dynamic Asset Allocation or Balanced Advantage schemes.

New-Hybrid-Fund-Categories-by-SEBI

Solution Oriented Schemes

SEBI has introduced retirement Fund and Children’s Fund schemes under this category. Retirement schemes have a minimum lock-in of five years or till retirement, whichever is earlier. Children’s schemes will have a lock-in of at least five years or till the child attains the age of majority, whichever is earlier.

Solution-Oriented-Schemes-by-SEBI

Other Schemes

SEBI has categories Index Funds/ETFs and FOFs (Overseas/Domestic) in other schemes. These schemes can invest in a minimum of 95 percent of their total assets.

Other-Schemes-by-SEBI

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Top Mutual Fund Houses Schemes that got New Names

Mutual fund houses are making changes in the schemes to comply with SEBI's new re-categorisation norms. Here is the list of existing mutual fund schemes that got new names.

Existing Scheme Name New Scheme Name
ADITYA Birla Sun Life Mutual Fund
Aditya Birla Sun Life Enhanced Arbitrage Fund Aditya Birla Sun Life Arbitrage Fund
Aditya Birla Sun Life MIP II - Wealth 25 Plan Aditya Birla Sun Life Regular Savings Fund
Aditya Birla Sun Life Small & Midcap Fund Aditya Birla Sun Life Small Cap Fund
Aditya Birla Sun Life Top 100 Fund Aditya Birla Sun Life Focused Equity Fund
Aditya Birla Sun Life Advantage Fund Aditya Birla Sun Life Equity Advantage Fund
Aditya Birla Sun Life Balanced '95 Fund Aditya Birla Sun Life Equity Hybrid '95 Fund
Aditya Birla Sun Life Cash Manager Aditya Birla Sun Life Low Duration Fund
Aditya Birla Sun Life Corporate Bond Fund Aditya Birla Sun Life Credit Risk Fund
Aditya Birla Sun Life Dividend Yield Plus Aditya Birla Sun Life Dividend Yield Fund
Aditya Birla Sun Life Floating Rate Fund - Short Term Aditya Birla Sun Life Money Manager Fund
Aditya Birla Sun Life Gilt Plus Fund - PF Plan Aditya Birla Sun Life Government Securities Fund
Aditya Birla Sun Life Income Plus Aditya Birla Sun Life Income Fund
Aditya Birla Sun Life New Millennium Fund Aditya Birla Sun Life Digital India Fund
Aditya Birla Sun Life Short Term Fund Aditya Birla Sun Life Corporate Bond Fund
Aditya Birla Sun Life Treasury Optimizer Fund Aditya Birla Sun Life Banking & PSU Debt fund
ICICI Prudential Mutual Fund
ICICI Prudential Balanced Fund ICICI Prudential Equity and Debt Fund
ICICI Prudential Advisor Series - Cautious Plan ICICI Prudential Advisor Series - Hybrid Fund
ICICI Prudential Advisor Series - Dynamic Accrual Plan ICICI Prudential Advisor Series - Debt Management Fund
ICICI Prudential Advisor Series - Long Term Savings ICICI Prudential Advisor Series - Passive Strategy Fund
ICICI Prudential Moderate ICICI Prudential Advisor Series - Conservative Fund
ICICI Prudential Very Aggressive ICICI Prudential Advisor Series - thematic fund
ICICI Prudential Corporate Bond Fund ICICI Prudential Medium Term Bond Fund
ICICI Prudential Equity Income Fund Cumulative ICICI Prudential Equity Savings Fund
ICICI Prudential Focused Bluechip Equity Fund ICICI Prudential Bluechip Fund
ICICI Prudential Income Opportunities Fund ICICI Prudential Bond Fund
ICICI Prudential Income ICICI Prudential Long Term Bond Fund
ICICI Prudential Liquid Plan ICICI Prudential Liquid Fund
ICICI Prudential Dynamic Plan ICICI Prudential Multi-Asset Fund
ICICI Prudential Flexible Income ICICI Prudential Savings Fund
ICICI Prudential Nifty 100 iWIN ETF ICICI Prudential Nifty 100 ETF
ICICI Prudential Nifty Index Fund ICICI Prudential Nifty Index Plan
ICICI Prudential Nifty iWIN ETF ICICI Prudential Nifty ETF
ICICI Prudential Regular Income Fund ICICI Prudential Ultra Short Term fund
ICICI Prudential Savings Fund ICICI Prudential Floating Interest Fund
ICICI Prudential Select Large cap fund ICICI Prudential Focused Equity Fund
ICICI Prudential Top 100 Fund ICICI Prudential Large & mid cap fund
ICICI Prudential Ultra Short Term ICICI Prudential Corporate Bond Fund
HDFC Mutual Fund
HDFC Cash Management Fund - Treasury Advantage Plan HDFC Low Duration Fund
HDFC Corporate Debt Opportunities Fund HDFC Credit Risk Debt Fund
HDFC Floating Rate Income Fund - Short Term Plan HDFC Floating Rate Debt Fund - Retail Plan
HDFC Gilt Fund - Long Term Plan HDFC Gilt Fund
HDFC High Interest Fund - Dynamic Plan HDFC Dynamic Debt Fund
HDFC High Interest Fund - Short Term Plan HDFC Medium Term Debt Fund
HDFC Medium Term Opportunities Fund HDFC Corporate Bond Fund
HDFC Short Term Opportunities Fund HDFC Short Term Debt Fund
HDFC Capital Builder Fund HDFC Capital Builder value fund
HDFC Cash Management Fund - Call Plan HDFC Overnight Fund
HDFC Cash Management Fund - Savings Plan HDFC Money Market Fund
HDFC Core & Satellite Fund HDFC Focused 30 Fund
HDFC Growth Fund HDFC Balanced Advantage Fund
HDFC Index Fund- Nifty Plan HDFC Index Fund - NIFTY 50 Plan
HDFC Large Cap Fund HDFC Growth Opportunities Fund
HDFC MF Monthly Income Plan - LTP HDFC Hybrid Debt Fund
HDFC Multiple Yield Fund - Plan 2005 HDFC Multi-Asset Fund
HDFC Premier Multi-Cap Fund HDFC Hybrid Equity Fund
HDFC Top 200 HDFC Top 100 Fund
HDFC Index Fund – SENSEX Plus Plan HDFC Index Fund-SENSEX Plan
SBI Mutual Fund
SBI Corporate Bond Fund SBI Credit Risk Fund
SBI Emerging Businesses Fund SBI Focused Equity Fund
SBI FMCG Fund SBI Consumption Opportunities Fund
SBI IT Fund SBI Technology Opportunities Fund
SBI Magnum Balanced Fund SBI Equity Hybrid Fund
SBI Magnum Equity Fund SBI Magnum Equity ESG Fund
SBI Magnum Gilt Fund - Long Term Plan SBI Magnum Gilt Fund
SBI Magnum Gilt Fund - Long Term Growth - PF Fixed 2 Years SBI Magnum Gilt Fund - PF Fixed 2 Years
SBI Magnum Gilt Fund - Long Term Growth - PF Fixed 3 Years SBI Magnum Gilt Fund - PF Fixed 3 Years
SBI Magnum Gilt Fund Short Term SBI Magnum Constant Maturity Fund
SBI Magnum InstaCash Fund - Liquid Floater Plan SBI Overnight Fund
SBI Magnum InstaCash Fund SBI Magnum Ultra Short Duration Fund
SBI Magnum Monthly Income Plan Floater SBI Multi Asset Allocation Fund
SBI Magnum Monthly Income Plan SBI Debt Hybrid Fund
SBI Magnum Multiplier Fund SBI Large and Midcap Fund
SBI Pharma Fund SBI Healthcare Opportunities Fund
SBI - Premier Liquid Fund SBI Liquid Fund
SBI Regular Savings Fund SBI Magnum Medium Duration Fund
SBI Small & Midcap Fund SBI Small Cap Fund
SBI Treasury Advantage Fund SBI Banking and PSU Fund
SBI-Short Horizon Fund - Ultra Short Term SBI Magnum Low Duration Fund
NIPPON INDIA MUTUAL FUND
Reliance Arbitrage Advantage Fund Nippon India Arbitrage Fund
Reliance Corporate Bond Fund Nippon India Classic Bond Fund
Reliance Diversified Power Sector Fund Nippon India Power and Infra Fund
Reliance Equity Opportunities Fund Nippon India Multi Cap Fund
Reliance Floating Rate Fund - Short Term Plan Nippon India Floating Rate Fund
Reliance Liquid Fund - Cash Plan Nippon India Ultra Short Duration Fund
Reliance Liquid Fund - Treasury Plan Nippon India Liquid Fund
Reliance Liquidity Fund Nippon India Money Market Fund
Reliance Media & Entertainment Fund Nippon India Consumption Fund
Reliance Medium Term Fund Nippon India Prime Debt Fund
Reliance Mid & Small Cap Fund Nippon India Focused Equity Fund
Reliance Monthly Income Plan Nippon India Hybrid Bond Fund
Reliance Money Manager Fund Nippon India Low Duration Fund
Reliance NRI Equity Fund Nippon India Balanced Advantage Fund
Reliance Quant Plus Fund Nippon India Quant Fund
Reliance Regular Savings Fund - Balanced Plan Nippon India Equity Hybrid Fund
Reliance Regular Savings Fund - Debt Plan Nippon India Credit Risk Fund
Reliance Regular Savings Fund - Equity Plan Nippon India Value Fund
Reliance Top 200 Fund Nippon India Large Cap Fund
DSP BlackRock Mutual Fund
DSP BlackRock Balanced Fund DSP BlackRock Equity and Bond Fund
DSP BlackRock Constant Maturity 10Y G-Sec Fund DSP BlackRock 10Y G-Sec Fund
DSP BlackRock Focus 25 Fund DSP BlackRock Focus Fund
DSP BlackRock Income Opportunities Fund DSP BlackRock Credit Risk Fund
DSP BlackRock Micro Cap Fund DSP BlackRock Small Cap Fund
DSP BlackRock MIP Fund DSP BlackRock Regular Savings Fund
DSP BlackRock Opportunities Fund DSP BlackRock Equity Opportunities Fund
DSP BlackRock Small and Mid Cap Fund DSP BlackRock Midcap Fund
DSP BlackRock Treasury Bill Fund DSP BlackRock Savings Fund
DSP BlackRock Ultra Short Term Fund DSP BlackRock Low Duration Fund

*Note-The list will be updated as and when we get an insight about the changes in the scheme names.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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