Lesson 36 of 50 for advisers · Fund categories after 2026 · 4 min read · Reviewed 13 Nov 2026
SEBI’s circular of 26 Feb 2026 replaced the 2017 categories. There are now five groups: equity, debt, hybrid, Life Cycle Funds and other schemes. Solution-oriented funds were discontinued, a Sectoral Debt Fund was added, and Value and Contra funds from one fund house may overlap by at most 50%.
The 2017 categories were replaced on 26 Feb 2026. There are five groups now: equity, debt, hybrid, Life Cycle Funds and other schemes such as index funds, ETFs and fund of funds.
Solution-oriented funds were discontinued that day. Existing ones stopped taking money and merge into schemes with a similar asset mix.
Life Cycle Funds run for 5 to 30 years, in steps of 5, with the maturity year in the name. A fund house may have at most six open at a time.
Debt gains a Sectoral Debt Fund, with at least 80% in AA+ bonds of one sector. A Value and a Contra fund from one house may overlap by at most 50%.
Key idea: One scheme per category is still the rule, with exceptions for index funds, fund of funds and sectoral funds on different themes.
Try the short quiz on this page to check what stuck.
3% in the first year, 2% in the second and 1% in the third.
Within 6 months of 26 Feb 2026, and names may not stress returns.
Three years, removing 35%, 35% and 30% of the excess overlap year by year.
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