NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Scheme Related Information
Under SEBI's categorisation of mutual fund schemes, which of the following describes a Sectoral/Thematic equity fund?
A Sectoral/Thematic fund must invest at least 80% of its total assets in equity and equity-related instruments of the chosen sector or theme, as per SEBI's scheme categorisation. This makes it a concentrated, higher-risk equity product compared with diversified funds.
- AIt must invest at least 80% of its total assets in equities of a particular sector or themeCorrect
- BIt must invest at least 65% of its total assets in large-cap stocks
- CIt must invest at least 90% of its total assets in index constituents
- DIt must invest at least 80% of its total assets in debt instruments of a single sector
Explanation
SEBI's categorisation requires a Sectoral/Thematic fund to hold a minimum of 80% of total assets in equity and equity-related instruments of the relevant sector or theme. The 65% large-cap limit applies to other kinds of equity schemes, and the 90% limit relates to index funds/ETFs, not sectoral funds.
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