Understanding Mutual Fund Categories (SEBI Classification)
SEBI standardised mutual funds into clear categories so you can compare like with like. Here’s the map.
To stop fund houses from labelling schemes confusingly, SEBI standardised mutual fund categories. Each scheme must now fit a defined box — described in its SID/KIM — so you can compare like with like.
The main groups
- Equity — e.g. large-cap, mid-cap, small-cap, large & mid, multi-cap, flexi-cap, value, focused, ELSS, sectoral/thematic.
- Debt — by duration and credit, from liquid and overnight to corporate bond, credit risk and gilt.
- Hybrid — mixes of equity and debt: balanced, aggressive, dynamic, multi-asset, arbitrage.
- Solution-oriented — retirement and children’s funds (with lock-ins).
- Other — index funds and fund-of-funds.
Why it matters
- Fair comparison — a large-cap fund can only be judged against other large-cap funds and the right benchmark.
- One per category — a fund house can usually offer only one scheme per category (barring index/FoF/sectoral), cutting clutter.
- Risk clarity — the category tells you roughly where a fund sits on the risk ladder before you read further.
Pick categories that match your goals and horizon, then compare funds within the category. Browse them on our mutual funds hub. Education only, not a recommendation.
