SEBI Mutual Fund Categories

📈

A. Equity Schemes

Predominantly investing in equity & equity-related instruments

13 Types

#	Fund Name	Equity Allocation	Segment Breakdown	Risk	Key Notes
01	Large Cap Fund	Large Cap Min 80%	Large Cap: min 80%	High	Top 100 companies by market cap
02	Mid Cap Fund	Mid Cap Min 65%	Mid Cap: min 65%	Very High	101–250 companies by market cap
03	Small Cap Fund	Small Cap Min 65%	Small Cap: min 65%	Very High	251st company onwards by market cap
04	Large & Mid Cap Fund	Large Cap Min 35% Mid Cap Min 35%	Large Cap: min 35% Mid Cap: min 35%	High	Balanced between large & mid
05	Multi Cap Fund	Total Eq. Min 75%	Large Cap: min 25% Mid Cap: min 25% Small Cap: min 25%	Very High	Equal spread across all 3 caps
06	Flexi Cap Fund	Total Eq. Min 65%	Any cap: dynamically managed	Very High	Fund manager has full discretion on cap allocation
07	Dividend Yield Fund	Div. Yield Min 80%	Dividend yielding stocks: min 80%	High	Focuses on high dividend paying companies
08	Value Fund	Total Eq. Min 80%	Value strategy stocks: min 80%	Very High	Buy undervalued stocks. Max 50% overlap with Contra Fund
09	Contra Fund	Total Eq. Min 80%	Contrarian strategy: min 80%	Very High	Goes against market trend. Max 50% overlap with Value Fund
10	Focused Fund	Total Eq. Min 80%	Max 30 stocks, any cap combination	Very High	Concentrated portfolio — max 30 stocks only
11	Sectoral Fund	One Sector Min 80%	Single sector: min 80%	Very High	Max 50% overlap with other equity schemes. AMFI-defined sectors
12	Thematic Fund	One Theme Min 80%	Single theme: min 80%	Very High	Theme = combination of 2+ sectors. Max 50% overlap with others
13	ELSS — Tax Saver Fund	Total Eq. Min 80%	Equity: min 80% (any cap)	Very High	3-yr lock-in. Tax deduction u/s 80C. As per ELSS 2005 notification

🏦

B. Debt Schemes

Predominantly investing in debt & money market instruments

17 Types

#	Fund Name	Investment Mandate	Duration / Allocation	Risk	Key Notes
01	Overnight Fund	Overnight securities only — 1 day maturity	Maturity 1 Day	Lowest	Up to 5% in G-Secs/T-bills (≤30 days) for margin/collateral
02	Liquid Fund	Debt + money market securities — maturity up to 91 days	Maturity ≤91 Days	Low	Short-term parking of funds. Instant redemption up to ₹50,000
03	Ultra Short Term Fund	Debt & Money Market instruments	Macaulay Duration: 3–6 months	Low	Slightly higher yield than Liquid Fund
04	Ultra Short to Short Term Fund	Debt & Money Market instruments	Macaulay Duration: 6–12 months	Low–Mod	Between ultra short and short term
05	Money Market Fund	Money Market instruments only	Maturity up to 1 year	Low	T-bills, CPs, CDs, CBLOs
06	Short Term Fund	Debt & Money Market instruments	Macaulay Duration: 1–3 years	Low–Mod	Suitable for 1–3 year investment horizon
07	Medium Term Fund	Debt & Money Market instruments	Macaulay Duration: 3–4 years Adverse scenario: 1–4 yrs	Moderate	Fund manager can reduce duration to 1 yr in adverse conditions
08	Medium to Long Term Fund	Debt & Money Market instruments	Macaulay Duration: 4–7 years Adverse scenario: 1–7 yrs	Moderate	Duration can be reduced to 1 yr in adverse rate situations
09	Long Term Fund	Debt & Money Market instruments	Macaulay Duration: > 7 years	Moderate	Sensitive to interest rate changes
10	Dynamic Term Fund	Investment across all durations	Dynamic — no fixed duration	Moderate	Fund manager actively manages duration based on interest rate view
11	Corporate Bond Fund	Corp. Bond Min 80%	AA+ & above rated corporate bonds: min 80%	Low–Mod	Only highest quality corporate bonds
12	Credit Risk Fund	Corp. Bond Min 65%	AA & below rated corporate bonds: min 65%	High	Takes credit risk for higher returns. Excludes AA+ bonds
13	Banking & PSU Debt Fund	Banks/PSUs Min 80%	Banks, PSUs, PFIs, Municipal Bonds: min 80%	Low–Mod	Safer corporate debt — government-owned entities
14	Gilt Fund	G-Secs Min 80%	Government Securities across all maturities: min 80%	Moderate	Zero credit risk. Interest rate risk only. Sovereign guarantee
15	10-Year Constant Maturity Gilt Fund	G-Secs Min 80%	G-Secs with Macaulay Duration = 10 years: min 80%	Moderate	Tracks 10-year benchmark yield. High interest rate sensitivity
16	Floating Interest Rate Fund	Float. Rate Min 65%	Floating rate instruments (incl. fixed-to-floating via swaps): min 65%	Low–Mod	Protects against rising interest rates
17	Sectoral Debt Fund	Sector Debt Min 80%	Debt of one sector (AA+ & above): min 80%	Moderate	Sectors: Financial Services, Energy, Infrastructure, Housing, Real Estate

⚖️

C. Hybrid Schemes

Mix of Equity + Debt + InvITs + Commodities

7 Types

#	Fund Name	Equity Allocation	Debt Allocation	Risk	Key Notes
01	Conservative Hybrid Fund	Equity 10–25%	Debt 75–90%	Low–Mod	Primarily debt-oriented. Small equity for growth kicker
02	Balanced Hybrid Fund	Equity 40–60%	Debt 40–60%	Moderate	Truly balanced. No Arbitrage permitted in this scheme
03	Aggressive Hybrid Fund	Equity 65–80%	Debt 20–35%	High	Mostly equity with debt cushion. Popular category (e.g. HDFC Hybrid)
04	Dynamic Asset Allocation Fund	Equity & Debt managed dynamically — no fixed range Fund manager shifts allocation based on market valuation models		High	Also called Balanced Advantage Fund. Only Equity + Debt, no InvITs
05	Multi Asset Allocation Fund	Min 3 asset classes — min 10% each Equity + Debt + Gold/Silver/InvITs/ETCDs		High	True diversification across 3+ asset classes including commodities
06	Arbitrage Fund	Equity Min 65%	Debt only in G-secs (< 1 yr maturity) + G-sec repos	Low	Exploits cash-futures price difference. No InvITs. Tax treated as equity
07	Equity Savings Fund	Gross Eq. Min 65% Net Eq. 15–40%	Debt Min 10%	Low–Mod	Equity + Arbitrage + Debt. Lower volatility than pure equity

🎯

D. Life Cycle Funds

Goal-based investing with glide path — 5 to 30 year tenures in multiples of 5

NEW Category

Years to Maturity	Equity (%)	Debt (%)	Gold/Silver/InvITs (%)	Notes
15–30 Years away	65–95%	5–25%	0–10%	Max equity — long growth runway
10–15 Years away	65–80%	5–25%	0–10%	Still equity-heavy
5–10 Years away	50–65%	5–25%	0–10%	Debt starts increasing
3–5 Years away	35–50%	25–50%	0–10%	Near balanced — protecting gains
1–3 Years away	20–35%	25–65%**	0–10%	Capital protection mode. Equity arbitrage up to 50% allowed
< 1 Year away	5–20%	25–65%**	0–10%	Near-maturity: mostly debt. Fund can merge with nearest maturity fund

Exit Load: 3% (within 1 yr) → 2% (within 2 yrs) → 1% (within 3 yrs) | Nomenclature: Life Cycle Fund 2055, Life Cycle Fund 2045, etc. | Max 6 funds active per AMC at any point | **Debt limited to AA & above rated, residual maturity < target maturity

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E. Other Schemes

Index Funds / ETFs and Fund of Funds

2 Types

#	Fund Name	Investment Mandate	Allocation	Risk	Key Notes
01	Index Funds / ETFs	Securities of a specific index (replicated/tracked)	Index Sec. Min 95%	Depends on Index	Passive investing. Low cost. Tracks Nifty 50, Sensex, etc.
02	Fund of Funds (FoF) Domestic / Overseas	Invests in other mutual fund schemes	Underlying Min 95%	Depends on Underlying	Can be Active / Passive / Omni (both). Multiple sub-categories per Annexure C

Bonus Reference

World's Shortest Mutual Fund Help Book 📖

Which fund to pick, when to pick it — simplified for every Indian investor

🗺️ Your Money · Your Goal · Your Fund

Investment Goal	Time Horizon	Risk Level	Recommended Fund Type	Why This Fund?
🏦 Park Emergency Fund	1 Day – 1 Month	Lowest	Liquid Fund / Overnight Fund	Better than savings account. Instant redemption. No lock-in.
✈️ Short Term Goal Vacation, gadget, bike	3 Months – 1 Year	Low	Ultra Short / Short Term Debt Fund	Stable returns. Low volatility. Better than FD for short horizons.
🏠 Medium Term Goal Car down payment, home reno	1 – 3 Years	Moderate	Conservative Hybrid / Balanced Hybrid	Mix of equity + debt. Grows better than pure debt. Less risky than pure equity.
🌱 First Time Investor Just starting SIP	3 – 5 Years	High	Large Cap Fund / Flexi Cap Fund	Stable blue-chip companies. Learn the market without extreme volatility.
💰 Tax Saving u/s 80C	Min 3 Years (lock-in)	Very High	ELSS – Tax Saver Fund	Save up to ₹46,800 tax. Shortest lock-in among 80C options. Equity growth.
📈 Long Term Wealth Creation	5 – 10 Years	Very High	Multi Cap / Flexi Cap / Mid Cap Fund	Diversified equity exposure. Long compounding runway. Core portfolio building.
🎯 Retirement Planning Child education / house	10 – 30 Years	Very High → Low	Life Cycle Fund	Auto-shifts from high equity (young) to high debt (near goal). Set and forget.
🚀 Aggressive Growth Bet High conviction / thematic	5+ Years	Very High	Small Cap / Sectoral / Thematic Fund	Max 10–15% of portfolio only. High risk = high reward. Not for beginners.
🤖 Passive / Low Cost Don't want to pick funds	5+ Years	High	Index Fund / ETF (Nifty 50 / Nifty 500)	Lowest cost (0.1–0.2% expense ratio). Beats 80% active funds over 10 years.
💸 Regular Income Need Senior citizen / retiree	Ongoing	Low – Mod	Equity Savings / Conservative Hybrid	SWP (Systematic Withdrawal Plan) gives monthly income. Tax-efficient vs FD.

⚡ Golden Rule: The longer your horizon, the more equity you can hold. The shorter the horizon, the safer your funds should be. | 📌 Portfolio Tip: Never put 100% in one fund type. Core (60%) + Satellite (40%) strategy works best for most investors.

Updated as per SEBI Circular Feb 2026

🌐 World's Shortest Mutual Fund Investment Help Book

Which fund is right for which time horizon — now with Life Cycle Funds

Category	Mutual Fund Scheme	TIME HORIZON									Taxation
Category	Mutual Fund Scheme	Upto 1 Month	1 to 3 Months	3 to 6 Months	6 to 12 Months	12 to 24 Months	24 to 36 Months	36 to 48 Months	48 to 60 Months	Above 5 Years	Taxation
DEBT FUND	Liquid Funds	✅	✅	✅							As per Income Slab
	Money Markets	❌	✅	✅	✅						As per Income Slab
	Ultra Short Term Funds (incl. Ultra Short to Short — NEW)	❌	❌	✅	✅	✅					As per Income Slab
	Short Term Funds	❌	❌	❌	❌	✅	✅	✅			As per Income Slab
	Banking & PSU Debt Funds	❌	❌	❌	❌	✅	✅				As per Income Slab
	Medium Term Funds	❌	❌	❌	❌	❌	✅	✅			As per Income Slab
	Income / Credit / Dynamic Bond Funds	❌	❌	❌	❌	❌	❌	✅	✅	✅	As per Income Slab
	Sectoral Debt Funds NEW	❌	❌	❌	❌	❌		✅	✅	✅	As per Income Slab
HYBRID FUND	Equity Arbitrage	❌	❌	❌		✅					Equity Tax LTCG / STCG
	Equity Savings Fund	❌	❌	❌	❌	❌	✅	✅			Equity Tax LTCG / STCG
	Hybrid Funds Aggressive / Balanced / Conservative	❌	❌	❌	❌	❌	❌	🔷	✅	✅	Equity Tax LTCG / STCG
	Multi Asset Allocation Fund UPDATED Min 3 asset classes, 10% each. InvITs/Gold/Silver now included	❌	❌	❌	❌	❌	🔷	✅	✅	✅	Equity Tax LTCG / STCG
EQUITY FUND	Equity Funds Large/Mid/Small/Flexi/Multi Cap, ELSS	❌	❌	❌	❌	❌	❌	❌	🔷	✅	Equity Tax LTCG / STCG
EQUITY FUND	Sectoral / Thematic Funds Max 50% portfolio overlap rule — NEW circular	❌	❌	❌	❌	❌	❌	❌	🔷	✅	Equity Tax LTCG / STCG
LIFE CYCLE NEW	Life Cycle Funds Glide path: 65–95% equity (far from goal) → 5–20% equity (near goal). Tenure: 5 to 30 years. Auto-rebalancing across Equity + Debt + Gold/Silver/InvITs.	❌	❌	❌	❌	❌	❌	❌	🔷	✅	Equity Tax LTCG / STCG (equity-like when 65%+ equity)

✅ Right Choice

❌ Wrong Choice

Sub Optimal

🔷 Tactical

As per Income Slab = Debt Tax

📦 LTCG 12.5% / STCG 20% = Equity Tax

For educational purposes only. Not financial advice. Consult a SEBI registered advisor before investing.

Mutual Fund Categories
& Investment Limits

World's Shortest Mutual Fund Help Book 📖

🌐 World's Shortest Mutual Fund Investment Help Book

Ready to Build Your
₹1 Crore Roadmap?

Mutual Fund Categories& Investment Limits

World's Shortest Mutual Fund Help Book 📖

🌐 World's Shortest Mutual Fund Investment Help Book

Ready to Build Your ₹1 Crore Roadmap?

Mutual Fund Categories
& Investment Limits

Ready to Build Your
₹1 Crore Roadmap?