Mutual fund structure
In this chapter: Sponsor, Trustee, AMC, RTAs · Scheme categories and the SEBI categorisation circular
A mutual fund is a trust with three roles. The Sponsor sets it up; the Trustee oversees in investor interest; the AMC manages the money. Registrar and Transfer Agents (RTAs) like CAMS and KFin handle operations — folios, statements, transactions. SEBI's 2017 categorisation circular standardised scheme types into ~36 categories with strict portfolio constraints.
The major equity categories: large-cap (top 100 by market cap, ≥80% in large), mid-cap (101-250, ≥65% mid), small-cap (251+, ≥65% small), large-and-midcap (≥35% each), flexi-cap (≥65% equity, no cap restriction), focused (max 30 stocks), value, contra, dividend yield, ELSS, sectoral/thematic. Debt categories: liquid, ultra-short, low duration, money market, short duration, medium duration, gilt, credit risk. Hybrid: aggressive, balanced, conservative, balanced advantage, multi-asset.
The categorisation has subtle exam-relevant constraints. A "Large & Mid Cap" scheme must hold ≥35% in large-cap AND ≥35% in mid-cap (not just an average of the two). A "Focused" scheme is capped at 30 stocks. A "Multi-cap" scheme (different from Flexi-cap) requires ≥25% each in large/mid/small post the Sept 2020 amendment.