Mutual Fund

About Mutual Fund

Mutual fund is a vehicle (in the form of a "trust") to mobilize money from investors, to invest in different markets and securities, in line with stated investment objectives. In other words, through investment in a mutual fund, an investor can get access to equities, bonds, money market instruments and/or other securities, that may otherwise be unavailable to them and avail of the professional fund management services offered by an asset management company.

Types of Mutual Funds

Large Cap

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.

Mid Cap

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

Small cap Fund: An open-ended equity scheme predominantly investing in small cap stocks. Minimum investment in equity and equity related instruments of small cap companies shall be 65 percent of total assets.

Multi Cap

Multi Cap Fund: An open-ended equity scheme investing across large cap, mid cap, small cap stocks.
• Minimum investment in equity & equity related instruments of large cap companies - 25% of total assets
• Minimum investment in equity & equity related instruments of mid cap companies - 25% of total assets
• Minimum investment in equity & equity related instruments of small cap companies - 25% of total assets

Sectoral / Thematic

Sectoral/Thematic: An open-ended equity scheme investing in a specific sector such as bank; power is a sectoral fund. While an open-ended equity scheme investing 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 and equity related instruments of a particular sector/ theme shall be 80 percent of total assets.