SEBI's Equity Fund Categories Explained for Investor Portfolio Choices

In 2017-18, SEBI reorganised mutual fund categories to clarify the equity fund landscape, which now includes over 10 categories with 15-30 schemes each. While this offers diverse options, it can overwhelm investors. Large-cap funds focus on top 100 companies and passive index funds are often sufficient. Flexi-cap funds invest across market caps with dynamic allocations. Aggressive hybrid funds may serve as lower-volatility alternatives. Not all categories are necessary for every investor, highlighting the need for tailored portfolio choices.