NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Scheme Related Information
A Sectoral/Thematic Fund and a Focused Fund are both equity categories under SEBI norms. Which pairing of the minimum equity investment and a feature is correct?
Sectoral/Thematic funds must invest at least 80% of assets in their chosen sector or theme, while Focused funds can hold a maximum of 30 stocks, as per SEBI's scheme categorisation.
- ASectoral/Thematic: at least 80% in a particular sector/theme; Focused: maximum 30 stocksCorrect
- BSectoral/Thematic: at least 65% in a particular sector/theme; Focused: maximum 50 stocks
- CSectoral/Thematic: at least 90% in a sector; Focused: maximum 10 stocks
- DSectoral/Thematic: at least 80% in large caps; Focused: minimum 30 stocks
Explanation
SEBI requires Sectoral/Thematic funds to invest at least 80% in the chosen sector or theme, and Focused funds to hold a maximum of 30 stocks with at least 65% in equity. The other pairings use incorrect thresholds.
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