SEBI: Mutual funds divided into five categories

Mumbai : In a latest move, Securities market regulator Sebi has divided mutual funds into five different categories to bring about uniformity in scheme characteristics.

The five categories in which Sebi has classified the mutual funds are - Equity; Debt; Hybrid; Solution Oriented; and Others.

The decision to classify the mutual bonds was taken up at the Mutual Fund Advisory Committee (MFAC).

"There is a need to bring in uniformity in the characteristics of similar type of schemes launched by different Mutual Funds," Sebi said in a circular.

"This would ensure that an investor of Mutual Funds is able to evaluate the different options available, before taking an informed decision to invest in a scheme."