TaxTMI 
TaxTMI 
Categorization and Rationalization of Mutual Fund Schemes
X X X X Extracts X X X X
X X X X Extracts X X X X
....of Schemes, Scheme Characteristics and Type of Scheme (Uniform Description of Schemes): 3. The Schemes would be broadly classified in the following groups: a. Equity Schemes b. Debt Schemes c. Hybrid Schemes d. Solution Oriented Schemes e. Other Schemes The details of the scheme categories under each of the aforesaid groups along with their characteristics and uniform description are given in the Annexure. 4. As per the annexure, the existing 'type of scheme' (presently mentioned below the scheme name in the offer documents/ advertisements/ marketing material/etc) would be replaced with the type of scheme (given in the third column of the tables in the Annexure) as applicable to each category of scheme. This will enhance the existing disclosure. Hence, for the purpose of alignment of the existing schemes with the provisions of this circular, change in "type of scheme" alone, would not be considered as a change in fundamental attribute. 5. In case of Solution oriented schemes, there will be specified period of lock in as stated in the Annexure. However, the said lock- in period would not be applicable to any existing ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....from their Trustees as early as possible but not later than 2 months from the date of this circular. c. The aforesaid proposals of the Mutual Funds would also include the proposed course of action (viz., winding up, merger, fundamental attribute change etc.) in respect of the existing similar schemes as well as those that are not in alignment to the categories stated herein. d. Subsequent to the observations issued by SEBI on the proposals, Mutual Funds would have to carry out the necessary changes in all respects within a maximum period of 3 months from the date of such observation. e. Where there is a merger of schemes/change of fundamental attribute(s) of a scheme (as laid down under SEBI Circular No. IIMARP/MF/CIR/01/294/98 dated February 4, 1998), the AMCs would be required to comply with Regulation 18 (15A) of SEBI (Mutual Funds Regulation, 1996). f. Mutual Funds are advised to strictly adhere to the scheme characteristics stated herein as well as to the spirit of this circular. Mutual Funds must ensure that the schemes so devised should not result in duplication/minor modifications of other schemes offered by them. The decision of SEBI in ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Minimum investment in equity- 65% of total assets An open ended equity scheme predominantly investing in dividend yielding stocks 7 Value Fund* Scheme should follow a value investment strategy. Minimum investment in equity & equity related instruments - 65% of total assets An open ended equity scheme following a value investment strategy Contra Fund* Scheme should follow a contrarian investment strategy. Minimum investment in equity & equity related instruments - 65% of total assets An open ended equity scheme following contrarian investment strategy 8 Focused Fund A scheme focused on the number of stocks (maximum 30) Minimum investment in equity & equity related instruments - 65% of total assets An open ended equity scheme investing in maximum 30 stocks (mention where the scheme intends to focus, viz., multi cap, large cap, mid cap, small cap) 9 Sectoral/ Thematic Minimum investment in equity & equity related instruments of a particular sector/ particular theme- 80% of total assets An open ended equity scheme investing in __ sector (mention the sector)/ An open ended equity scheme following __ theme (mention ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... that the Macaulay duration of the portfolio is between 4 - 7 years An open ended medium term debt scheme investing in instruments with Macaulay duration between 4 years and 7 years (please refer to page no.__)# 9 Long Duration Fund Investment in Debt & Money Market Instruments such that the Macaulay duration of the portfolio is greater than 7 years An open ended debt scheme investing in instruments with Macaulay duration greater than 7 years (please refer to page no.__)# 10 Dynamic Bond Investment across duration An open ended dynamic debt scheme investing across duration 11 Corporate Bond Fund Minimum investment in corporate bonds- 80% of total assets (only in highest rated instruments) An open ended debt scheme predominantly investing in highest rated corporate bonds 12 Credit Risk Fund^ Minimum investment in corporate bonds- 65% of total assets (investment in below highest rated instruments) An open ended debt scheme investing in below highest rated corporate bonds 13 Banking and PSU Fund Minimum investment in Debt instruments of banks, Public Sector Undertakings, Public Financial Institutions- 80% of total assets A....