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Ch.2 · Mutual Fund Structure Basics · medium

What is a Large Cap fund as defined by SEBI?

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EXPLANATION

As per SEBI categorisation, a Large Cap fund must invest a minimum of 80% of total assets in equity and equity-related instruments of large cap companies — defined as the top 100 companies by full market capitalisation. AMFI publishes this list every 6 months.

A.A fund that invests in companies with market cap above ₹500 crore

B.A fund that must invest minimum 80% in the top 100 companies by market capitalisation [✓ Correct]

C.A fund that invests in companies listed on BSE 100 index only

D.A fund that invests minimum 65% in equity with no market cap restriction

EXPLANATION

As per SEBI categorisation, a Large Cap fund must invest a minimum of 80% of total assets in equity and equity-related instruments of large cap companies — defined as the top 100 companies by full market capitalisation. AMFI publishes this list every 6 months.

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