As per the SEBI circular, open-end equity mutual fund schemes have been categorized under the following subheads:
Open Ended Equity Scheme
Multi-Cap Fund: An open-ended equity scheme investing across large-cap, mid-cap, small-cap stocks. The minimum investment in equity and equity-related instruments shall be 65 percent of total assets.
Large Cap Fund: An open-ended equity scheme predominantly investing in large-cap stocks. The minimum investment in equity and equity-related instruments of large-cap companies shall be 80 percent of total assets.
Large and Mid-Cap Fund: An open-ended equity scheme investing in both large-cap and mid-cap stocks. The minimum investment in equity and equity-related instruments of large-cap companies shall be 35 percent of total assets. The minimum investment in equity and equity-related instruments of mid-cap stocks shall be 35 percent of total assets.
Mid Cap Fund: An open-ended equity scheme predominantly investing in mid-cap stocks. The minimum investment in equity and equity-related instruments of mid-cap companies shall be 65 percent of total assets.
Small-Cap Fund: An open-ended equity scheme predominantly investing in small-cap stocks. The minimum investment in equity and equity-related instruments of small-cap companies shall be 65 percent of total assets.
Dividend Yield Fund: An open-ended equity scheme predominantly investing in dividend-yielding stocks. The scheme should predominantly invest in dividend-yielding stocks. The minimum investment in equity shall be 65 percent of total assets.
Value Fund or Contra Fund: A value fund is an open-ended equity scheme following a value investment strategy. Minimum investment in equity & equity-related instruments shall be 65 percent of total assets. A contra fund is an open-ended equity scheme following a contrarian investment strategy. Mutual Funds will be permitted to offer either Value fund or Contra fund.
Focused Fund: An open-ended equity scheme investing in a maximum of 30 stocks (the scheme needs to mention where it intends to focus, viz., multi-cap, large-cap, mid-cap, small-cap). Minimum investment in equity & equity-related instruments shall be 65 percent of total assets.
Sectoral/Thematic: An open-ended equity scheme investing in a specific sector such as a bank, or power is a sectoral fund. While an open-ended equity scheme invests in line with an investment theme. For example, an infrastructure thematic fund might invest in shares of companies that are into infrastructure, construction, cement, steel, telecom, power, etc. The minimum investment in equity & equity-related instruments of a particular sector/ particular theme shall be 80 percent of total assets.
Equity Linked Savings Scheme (ELSS): An open-ended equity-linked saving scheme with a statutory lock-in of 3 years and tax benefit. The minimum investment in equity and equity related 24 instruments shall be 80 percent of total assets (in accordance with the Equity Linked Saving Scheme, 2005 notified by the Ministry of Finance).