businessfortnight

Thanks to categorization of mutual funds by market regulator SEBI (Securities and Exchange of India), it is easy for investors to navigate through a wide array of schemes before making an investment decision. Mutual funds have been further categorized based on certain unique attributes like investment objective, risk profile, asset allocation strategy, etc. Depending on the nature of the scheme and its investment objective, a mutual fund may invest across various asset classes and money market instruments likecompany stocks, equity, debt, call money, government securities, certificate of deposits, etc. What are multi cap funds? In SEBI’s own words – In orderto ensure uniformity in respect of the investment universe forequity schemes, it has been decided to define large cap, mid cap and small capas follows – Large Cap Funds:1st-100thcompany in terms of full market capitalization Mid Cap Funds:101st-250thcompany in terms of full market capitalization Small Cap Funds:251stcompany onwards