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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Mutual Funds

Under SEBI's categorisation of mutual fund schemes, which of the following best describes a Sectoral/Thematic equity fund's minimum investment requirement?

A sectoral or thematic equity fund must invest at least 80% of its total assets in equity and equity-related instruments of the specific sector or theme, as per SEBI's scheme categorisation norms. The 65% limit belongs to other categories.

  1. AAt least 80% of total assets in equity and equity-related instruments of a particular sector or themeCorrect
  2. BAt least 65% of total assets in equity and equity-related instruments of a particular sector or theme
  3. CAt least 90% of total assets in equity and equity-related instruments of a particular sector or theme
  4. DAt least 51% of total assets in equity and equity-related instruments of a particular sector or theme

Explanation

SEBI's categorisation requires Sectoral/Thematic funds to invest at least 80% of total assets in equity and equity-related instruments of the chosen sector or theme. The 65% figure applies to other categories such as dividend yield or value funds, so it is wrong here.

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