The mutual fund universe in India spans 9+ distinct categories, each serving different investment objectives, risk appetites, and time horizons. This section maps the complete landscape.
Asset Class Divisions:
Equity Sub-Categories:
Passive & Smart Strategies:
Specialised Categories:
Solution-oriented mutual funds are a specific category defined by SEBI for investors planning for major life goals, such as retirement or a child’s future needs. These schemes come with built-in structural features to align investments with long-term horizons. As per…
Fund of Funds and International Funds A fund of funds (FoF) is a mutual fund scheme that invests primarily in units of other mutual funds rather than directly in stocks, bonds, or securities. An international fund, also known as an…
Smart beta funds, also known as factor-based funds, are passive investment options that track rules-based indices to provide exposure to specific stock characteristics beyond market capitalisation weighting. Unlike traditional index funds that weight stocks by company size, smart beta funds…
Equity savings funds (ESS) are a specific category of open-ended hybrid mutual funds under SEBI regulations. These funds maintain a portfolio mix of direct equity investments, hedged arbitrage positions, and debt or money market instruments. Many Indian households view them…
An arbitrage fund is a type of hybrid mutual fund that aims to generate returns by exploiting temporary price differences of the same security in different markets, mainly between the cash (spot) market and the derivatives (futures) market. SEBI requires…
Index funds and exchange-traded funds (ETFs) are passive investment structures that seek to replicate the performance of a market index, such as the Nifty 50 or Sensex, by holding the same stocks in similar proportions. This is general educational content…
Sectoral funds are equity mutual funds that invest primarily in stocks of companies from a single sector. Thematic funds are equity mutual funds that focus on a broader theme, investing in companies across multiple related sectors. Many Indian households relate…
Equity mutual funds in India are categorised based on the market capitalisation of the companies they invest in. Market capitalisation is the total market value of a company’s outstanding shares. SEBI standardises these categories: large-cap funds invest primarily in the…
Mutual funds in India pool money from investors to invest in securities. In India, SEBI categorises most mutual fund schemes into three core asset classes: equity, debt, and hybrid. Equity funds primarily invest in stocks, debt funds in fixed-income securities…