Securities market regulator SEBI on Friday classified Mutual Funds into five categories to bring about uniformity in scheme characteristics.
According to SEBI, the issue of scheme classification was taken up at the Mutual Fund Advisory Committee (MFAC).
The schemes have been broadly classified into five groups namely Equity; Debt; Hybrid; Solution Oriented; and Others.
"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," it added.