Terms and Definitions
Mutual fund schemes in India are grouped into categories defined by SEBI, and AMFI uses the same categories in its daily NAV file. Each scheme must stay true to its category. The descriptions below summarise the SEBI categorisation framework; the exact rules are in the SEBI circular and in each scheme's offer document.
Equity schemes
Multi Cap Fund – An open-ended equity scheme investing across large cap, mid cap and small cap stocks, with at least 75% of total assets in equity and equity-related instruments, split as at least 25% each in large cap, mid cap and small cap companies.
Large Cap Fund – An open-ended equity scheme predominantly investing in large cap stocks: at least 80% of total assets in large caps. Large caps are the top 100 companies by full market capitalisation, as listed half-yearly by AMFI (clause 2.7 of SEBI's Master Circular).
Large & Mid Cap Fund – An open-ended equity scheme investing in both large cap and mid cap stocks: at least 35% in large caps and at least 35% in mid caps.
Mid Cap Fund – An open-ended equity scheme predominantly investing in mid cap stocks: at least 65% of total assets in mid caps, which are the companies ranked 101st to 250th by full market capitalisation.
Small Cap Fund – An open-ended equity scheme predominantly investing in small cap stocks: at least 65% of total assets in small caps, which are the companies ranked 251st onwards by full market capitalisation.
Flexi Cap Fund – An open-ended dynamic equity scheme investing across large cap, mid cap and small cap stocks, with at least 65% of total assets in equity and equity-related instruments and no fixed split between the three.
Dividend Yield Fund – An open-ended equity scheme predominantly investing in dividend-yielding stocks. At least 80% of total assets must be in equity and equity-related instruments (the minimum was 65% before SEBI's circular of 26 February 2026).
Value Fund – An open-ended equity scheme following a value investment strategy. At least 80% of total assets must be in equity and equity-related instruments (the minimum was 65% before SEBI's circular of 26 February 2026). A fund house may now offer both a Value Fund and a Contra Fund if the portfolio overlap between them is at most 50%.
Contra Fund – An open-ended equity scheme following a contrarian investment strategy. At least 80% of total assets must be in equity and equity-related instruments (the minimum was 65% before SEBI's circular of 26 February 2026).
Focused Fund – An open-ended equity scheme investing in a maximum of 30 stocks and stating where it intends to focus (multi cap, large cap, mid cap or small cap). At least 80% of total assets must be in equity and equity-related instruments (the minimum was 65% before SEBI's circular of 26 February 2026).
Sectoral / Thematic Fund – An open-ended equity scheme investing at least 80% of total assets in equity and equity-related instruments of one sector (Sectoral Fund) or of one theme (Thematic Fund); a theme may combine two or more sectors. Since SEBI's circular of 26 February 2026 the two are separate categories. Launches must follow the sector and theme list that AMFI publishes half-yearly with SEBI, and a scheme's portfolio overlap with other sectoral/thematic schemes and other equity categories (except large cap) must stay within 50%, measured quarterly.
ELSS – Tax Saver Fund – An open-ended scheme with attributes in accordance with the Equity Linked Saving Scheme, 2005 notified by the Ministry of Finance (including a 3-year lock-in and tax benefit under Section 80C, where the old tax regime is chosen). At least 80% of total assets must be in equity and equity-related instruments.
Debt schemes
Overnight Fund – An open-ended debt scheme investing in overnight securities, which have a maturity of 1 day. It may keep up to 5% of net assets in G-secs and T-bills of up to 30 days residual maturity as margin and collateral.
Liquid Fund – An open-ended liquid scheme investing in debt and money market securities with a maturity of up to 91 days only.
Ultra Short Term Fund – An open-ended ultra-short term debt scheme (AMFI lists it as Ultra Short Duration) investing in debt and money market instruments such that the Macaulay duration of the portfolio is between 3 months and 6 months.
Ultra Short to Short Term Fund – An open-ended debt scheme investing in debt and money market instruments such that the Macaulay duration of the portfolio is between 6 months and 12 months. It takes the place of the earlier Low Duration Fund category, which AMFI's list may still show.
Money Market Fund – An open-ended debt scheme investing in money market instruments with a maturity of up to 1 year.
Short Term Fund (Short Duration) – An open-ended short term debt scheme investing in debt and money market instruments such that the Macaulay duration of the portfolio is between 1 year and 3 years.
Medium Term Fund (Medium Duration) – An open-ended medium term debt scheme where the Macaulay duration of the portfolio is between 3 years and 4 years (1 year to 4 years under an anticipated adverse situation, when the fund manager may shorten duration by up to one year).
Medium to Long Term Fund (Medium to Long Duration) – An open-ended medium to long term debt scheme where the Macaulay duration of the portfolio is between 4 years and 7 years (1 year to 7 years under an anticipated adverse situation).
Long Term Fund (Long Duration) – An open-ended debt scheme where the Macaulay duration of the portfolio is greater than 7 years.
Dynamic Term Fund (Dynamic Bond) – An open-ended dynamic debt scheme investing across duration, so the fund manager can move between short and long maturities as interest rate views change.
Corporate Bond Fund – An open-ended debt scheme predominantly investing in the highest rated corporate bonds: at least 80% of total assets in AA+ and above rated corporate bonds.
Credit Risk Fund – An open-ended debt scheme predominantly investing in lower rated corporate bonds: at least 65% of total assets in AA and below rated corporate bonds (excluding AA+). It carries higher credit risk than a Corporate Bond Fund.
Banking and PSU Fund – An open-ended debt scheme predominantly investing in debt instruments of banks, public sector undertakings, public financial institutions and municipal bonds: at least 80% of total assets.
Gilt Fund – An open-ended debt scheme investing in government securities across maturities: at least 80% of total assets in G-secs.
Gilt Fund with 10 year constant duration – An open-ended debt scheme investing in government securities with a constant maturity of 10 years: at least 80% of total assets in G-secs, with the portfolio Macaulay duration equal to 10 years.
Floating Interest Rates Fund – An open-ended debt scheme predominantly investing in floating rate instruments (including fixed rate instruments converted to floating rate through swaps or derivatives): at least 65% of total assets.
Sectoral Debt Fund – A category added by SEBI's circular of 26 February 2026: an open-ended debt scheme investing at least 80% of total assets in debt and debt-related instruments of one named sector, across duration, only in AA+ and above rated corporate bonds. Permitted sectors: Financial Services, Energy, Infrastructure, Housing and Real Estate.
Hybrid schemes
Conservative Hybrid Fund – An open-ended hybrid scheme investing predominantly in debt: 10% to 25% in equity and equity-related instruments and 75% to 90% in debt instruments.
Balanced Hybrid Fund – An open-ended balanced scheme investing only in equity and debt: 40% to 60% in equity and equity-related instruments and 40% to 60% in debt, with no arbitrage.
Aggressive Hybrid Fund – An open-ended hybrid scheme investing predominantly in equity: 65% to 80% in equity and equity-related instruments and 20% to 35% in debt instruments.
Dynamic Asset Allocation or Balanced Advantage Fund – An open-ended dynamic asset allocation scheme investing in equity and debt only, with the equity and debt mix changed dynamically by the fund manager according to the fund's own model.
Multi Asset Allocation Fund – An open-ended scheme investing in at least three asset classes (for example equity, debt, gold), with a minimum of 10% in each. Foreign securities are not counted as a separate asset class.
Arbitrage Fund – An open-ended scheme investing in arbitrage opportunities between the cash and derivatives markets: at least 65% of total assets in equity and equity-related instruments, with debt exposure limited to government securities of under one year and repo in government bonds. No investment in InvITs is permitted.
Equity Savings Fund – An open-ended scheme investing in equity, arbitrage and debt: at least 65% of total assets in equity and equity-related instruments, net equity exposure of 15% to 40%, and at least 10% in debt. The maximum arbitrage exposure and the minimum hedged and unhedged exposure are stated in the scheme document.
Solution Oriented schemes
Retirement Fund – A discontinued category. Retirement Funds were solution-oriented schemes with a lock-in of 5 years or till retirement age, whichever was earlier. SEBI's circular of 26 February 2026 discontinued the solution-oriented category with immediate effect: existing schemes must stop all subscriptions and be merged with another scheme of similar asset allocation and risk profile, with SEBI's prior approval.
Children's Fund – A discontinued category. Children's Funds were solution-oriented schemes with a lock-in of 5 years or till the child attains majority, whichever was earlier. Under SEBI's circular of 26 February 2026 the solution-oriented category is discontinued: existing schemes must stop all subscriptions and be merged with a scheme of similar asset allocation and risk profile, with SEBI's prior approval.
Other schemes
Life Cycle Fund – A category introduced by SEBI's circular of 26 February 2026: an open-ended fund with a pre-determined maturity and a glide path for goal-based investing, across equity, debt, InvITs, exchange traded commodity derivatives (gold and silver only) and gold and silver ETFs. The equity share falls as maturity nears (for example, in a 15-year fund 65% to 80% with 10 to 15 years to go and 5% to 20% in the last year). The maturity year is part of the name (for example Life Cycle Fund 2045), and an exit load of 3% applies within one year, 2% within two years and 1% within three years.
Index Funds and ETFs – Open-ended schemes that replicate or track a particular index and invest at least 95% of total assets in the securities of that index. Index funds are bought from the fund house; ETFs trade on stock exchanges.
Gold ETF and Silver ETF – Passive exchange traded funds that invest in gold or silver, so their value follows the price of the metal. AMFI lists them under Other Schemes.
FoF (Overseas) – An open-ended fund of funds scheme investing at least 95% of total assets in an underlying overseas fund or funds.
FoF (Domestic) – An open-ended fund of funds scheme investing at least 95% of total assets in the units of one or more underlying domestic mutual fund schemes.
Other ETFs – Exchange traded funds that are not index funds and not gold or silver ETFs, as classified by AMFI.
Reading this page
Category return – the simple (equal-weighted) average of the returns of all active open-ended Regular plan, Growth option schemes in the category that have data for the period, using AMFI NAVs. Up to 1 year the return is absolute; 3, 5 and 10 years are annualised (CAGR). Example: if a category has 30 schemes and 28 are old enough to have a 5-year record, its 5-year figure is the average of those 28.
Colours – within each period, the lowest category returns are red, the middle (median) is yellow and the highest are green. The colours compare categories with each other; they do not say whether a return is good or bad in absolute terms.
Source: SEBI circular HO/24/13/15(2)2026-IMD-RAC4/I/5764/2026 dated 26 February 2026, Categorization and Rationalization of Mutual Fund Schemes (clause 2.6 of the Master Circular for Mutual Funds), and AMFI scheme classification. Existing schemes have 6 months from the circular to align with it, so AMFI's list may still show older category names for a while. Allocation limits can change; please check sebi.gov.in and the scheme documents. Past performance does not guarantee future returns. Mutual fund investments are subject to market risks; please read all scheme related documents carefully before investing.
