List of Mutual Fund Categories
Liquid Fund
Debt and money market securities with maturity of upto 91 days only
Ultra Short Duration Fund
Debt & Money Market instruments with Macaulay duration between 3 - 6 months
Short Duration Fund
Debt & Money Market instruments with Macaulay duration between 1 - 3 years
Corporate Bond Fund
Minimum 80% in corporate bonds, only in AA+ and above rated corporate bonds
Low Duration Fund
Debt & Money Market instruments with Macaulay duration between 6 - 12 months
Money Market Fund
Investment in Money Market instruments having maturity upto 1 Year
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Gilt Fund (10Y duration)
Minimum 80% in G-secs, with Macaulay duration being equal to 10 years
Banking and PSU Fund
Minimum 80% in Debt instruments of Banks, PSUs, PFIs and Municipal Bonds
Credit Risk Fund
Minimum 65% in corporate bonds, only in AA and below rated corporate bonds
Dynamic Bond
Investment across duration
Floater Fund
Minimum 65% in floating rate instruments
Gilt Fund
Minimum 80% in G-secs, across maturity
Long Duration Fund
Debt & Money Market Instruments with Macaulay duration greater than 7 years
Medium Duration Fund
Debt & Money Market instruments with Macaulay duration between 3 - 4 years
Medium to Long Duration Fund
Debt & Money Market instruments with Macaulay duration between 4 - 7 years
Overnight Fund
Overnight securities having maturity of 1 day
Other
Other funds that could not be categorised
Equity
Large Cap Fund
At least 80% investment in large cap stocks.
Mid Cap Fund
At least 65% investment in mid cap stocks.
Small Cap Fund
At least 65% investment in small cap stocks.
Flexi Cap
At least 65% investments in equity & equity related instruments.
Multi Cap Fund
At least 75% investment in Equity & Equity related instruments.
Large and Mid Cap Fund
At least 35% investment in large cap stocks and 35% in mid cap stocks.
Contra Fund
Scheme follows contrarian investment strategy with at least 65% in stocks.
Dividend Yield Fund
Predominantly invest in dividend yielding stocks, with at least 65% in stocks.
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ELSS (Tax Savings)
At least 80% in stocks according to ELSS, 2005, notified by Ministry of Finance.
ESG
Funds focused towards ESG investments.
Equity Ex-Top 100 Long Short Fund
Equity Long Short Fund
Focused Fund
Max 30 stocks with minimum 65% in equity & equity-related instruments.
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FoF (Overseas/Domestic)
Minimum 95% investment in the underlying fund(s).
Index Funds
Minimum 95% investment in securities of a particular index.
Sector - Consumption
At least 80% investment in stocks of a particular sector/ theme.
Sector - Energy
At least 80% investment in stocks of a particular sector/ theme.
Sector - Financial Services
At least 80% investment in stocks of a particular sector/ theme.
Sector - FMCG
At least 80% investment in stocks of a particular sector/ theme.
Sector - Healthcare
At least 80% investment in stocks of a particular sector/ theme.
Sector - Infrastructure
At least 80% investment in stocks of a particular sector/ theme.
Sectoral/ Thematic
At least 80% investment in stocks of a particular sector/ theme.
Sector - Precious Metals
At least 80% investment in stocks of a particular sector/ theme
Sector - Technology
At least 80% investment in stocks of a particular sector/ theme.
Sector Rotation Long Short Fund
Value Fund
Value investment strategy, with at least 65% in stocks.
Hybrid
Multi Asset Allocation
At least 3 asset classes (minimum 10% in each)
Arbitrage Fund
Follows arbitrage strategy, at least 65% in Equity
Equity Savings
Equity & equity-related instruments ≥65%, debt ≥10%, derivatives (hedging limit per SID).
Aggressive Hybrid Fund
65% - 80% in Equity; 35% - 20% in Debt
Balanced Hybrid Fund
40% - 60% in Equity;
40% to 60% in Debt
Conservative Hybrid Fund
10% - 25% in Equity; 90% - 75% in Debt
Asset Allocation Long Short Fund
Children's Fund
Lock-in: 5 years or until child turns 18, whichever is earlier.
Dynamic Asset Allocation or Balanced Advantage
Dynamic allocation: 0-100% in Equity & 0-100% in Debt
Hybrid Long Short Fund
Retirement Fund
Lock-in: 5 years or until retirement, whichever comes first.
Mutual Fund Category FAQs
What are the main types of mutual fund categories?
As per SEBI classification, mutual funds fall into broad groups: equity (large cap, mid cap, small cap, ELSS and more), debt (liquid, short duration, gilt and others), hybrid (balanced, aggressive, conservative) and solution-oriented funds.
What is the difference between equity and debt mutual funds?
Equity funds invest mainly in stocks and carry higher risk with higher return potential over the long term. Debt funds invest in fixed-income instruments like bonds and are generally lower risk with more stable returns.
Which mutual fund category is best for beginners?
Beginners with a long horizon often start with large-cap or index funds for relative stability, or hybrid funds that mix equity and debt. The right choice depends on your risk profile and goals.
What is an ELSS fund?
ELSS (Equity Linked Savings Scheme) is an equity mutual fund category that offers a tax deduction under Section 80C, with a lock-in period of three years — the shortest among 80C options.
How are mutual fund categories defined in India?
SEBI standardised mutual fund categories in 2017 so that funds are grouped consistently across fund houses, making it easier for investors to compare similar schemes.