Mutual Funds

Debt, Hybrid Mutual Funds Classified Under The New SEBI-Defined Categories

Mutual fund houses have classified hybrid funds, debt funds, and other funds as per SEBI-defined categories.

Based on the circular issued by SEBI, the fund houses have classified the MF schemes under five categories, namely Hybrid Schemes, Debt Schemes, Equity Schemes, Solution-Oriented Schemes, and Other Schemes.

The new SEBI-defined categories under which all the hybrid fund schemes are classified include Conservative Hybrid Fund, Balanced Hybrid Fund, Aggressive Hybrid Fund, Dynamic Asset Allocation, Multi-Asset Allocation, Arbitrage Fund, and Equity Savings.

All the debt fund schemes comes under the new SEBI-defined categories including Overnight, Liquid, Ultra Short-Duration, Low-Duration, Money Market, Short-Duration, Medium-Duration, Medium To Long Duration, Long Duration, Dynamic Bond, Gilt Fund, Gilt Fund With 10-Year Constant Duration, Banking & PSU, Floater Fund, Corporate Bond, and Credit Risk.

The new categories under which all equity mutual fund schemes are classified include Multi-Cap Fund, Large-Cap Fund, Large And Mid-Cap Fund, Mid-Cap Fund, Small-Cap Fund, Dividend-Yield Fund, Value Fund, Contra Fund, Focused Fund, Equity-Infrastructure, Equity-Other, Sector-Energy, Sector-Financial Services, Sector-FMCG, Sector-Healthcare, Sector-Precious Metals, Sector-Technology, and ELSS (Tax Savings).

Solution-Oriented Schemes classified under the new categories – Retirement, and Children’s fund. The Other schemes are classified under the new categories – Index Fund, and Fund of Funds.

SEBI (Securities and Exchange Board of India) issued a circular requesting the fund houses to classify their MF schemes based on defined categories, last year.

The SEBI circular defined 16 categories for debt funds, six categories for hybrid funds, 10 categories for equity funds, and two categories for solution-oriented schemes, and two categories for other schemes, according to report from Bloomberg Quint.

SEBI also offered fund houses the permission to make their decision for classifying the schemes based on defined categories.

The objective of this re-categorisation is to standardise the mutual fund schemes in India, to bring uniformity and to avoid duplication, as well as to simplify choice for the investors.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]

Bindhu Mol. G loves writing news articles. She excels in SEO articles, technical articles and academic articles. She covers commodities and mutual fund news for OWLT Market.

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