Tuesday, March 13, 2018

Equity Fund Classification by SEBI

Sr.No.
Category of Schemes
Scheme Characteristics
Type of scheme (uniform description of scheme)
1
Multi Cap Fund
Minimum investment in equity & equity related instruments- 65% of total assets
Multi Cap Fund- An open ended equity scheme investing across large cap, mid cap, small cap stocks
2
Large Cap Fund
Minimum investment in equity & equity related instruments of large cap companies- 80% of total assets
Large Cap Fund- An open ended equity scheme predominantly investing in large cap stocks
3
Large & Mid Cap Fund
Minimum investment in equity & equity related instruments of large cap companies- 35% of total assets
Minimum investment in equity & equity related instruments of mid cap stocks- 35% of total assets
Large & Mid Cap Fund- An open ended equity scheme investing in both large cap and mid cap stocks
4
Mid Cap Fund
Minimum investment in equity & equity related instruments of mid cap companies- 65% of total assets
Mid Cap Fund- An open ended equity scheme predominantly investing in mid cap stocks
5
Small cap Fund
Minimum investment in equity & equity related instruments of small cap companies- 65% of total assets
Small Cap Fund- An open ended equity scheme predominantly investing in small cap stocks
6
Dividend Yield Fund
Scheme should predominantly invest in dividend yielding stocks.
Minimum investment in equity- 65% of total assets

An open ended equity scheme predominantly investing in dividend yielding stocks
7
Value Fund*
Scheme should follow a value investment strategy.
Minimum investment in equity & equity related instruments - 65% of total assets
An open ended equity scheme following a value investment strategy
Contra Fund*
Scheme should follow a contrarian investment strategy.
Minimum investment in equity & equity related instruments - 65% of total assets

An open ended equity scheme following contrarian investment strategy
8
Focused Fund
A scheme focused on the number of stocks (maximum 30)
Minimum investment in equity & equity related instruments - 65% of total assets
An open ended equity scheme investing in maximum 30 stocks (mention where the scheme intends to focus, viz.,
9
Sectoral/ Thematic
Minimum investment in equity & equity related instruments of a particular sector/ particular theme- 80% of total assets
An open ended equity scheme investing in __ sector (mention the sector)/
An open ended equity scheme following __ theme (mention the theme)
10
ELSS
Minimum investment in equity & equity related instruments - 80% of total assets (in accordance with Equity Linked Saving Scheme, 2005 notified by Ministry of Finance)
An open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit



Debt fund classification

Debt Mutual Funds mainly invest in a mix of debt  securities such as Treasury Bills, Government Securities, Corporate Bonds, Money Market instruments and other debt securities of different time horizons.

The following are the 16 classification of debt fund as classified by SEBI (Security Exchange Board of India):

1.  Overnight Fund – Investment in overnight securities having maturity of 1 day.
2.  Liquid Fund – Investment in debt and money market securities with maturity of up to 91 days.
3.  Ultra Short Duration Fund – Investment in debt and money market securities that have duration of the portfolio between 3 to 6 months.
4.  Low Duration Fund – Investment in debt and money market securities that have duration of the portfolio between 6 to 12 months.
5.  Money Market Fund – Investment in money market instruments having maturity upto 1 year.
6.  Short Duration Fund – Investment in debt and money market securities that have duration of the portfolio between 1 to 3 years.
7.  Medium Duration Fund – Investment in debt and money market securities that have duration of the portfolio between 3 to 4 years.
8.  Medium to Long Duration Fund – Investment in debt and money market securities that have duration of the portfolio between 4 to 7 years.
9.  Long Duration Fund – Investment in debt and money market securities that have duration of the portfolio greater than 7 years.
10.  Dynamic Bond - Investment across duration.
11.  Corporate Bond Fund – Minimum 80% investment in corporate bonds with highest rated instruments.
12.  Credit Risk Fund – Minimum 65% investment in corporate bonds in below highest rated instruments.
13.  Banking and PSU Fund – Minimum 80% investment in bonds issued by Public sector banks, Public sector undertakings, Public Financial Institutions.
14.  Gilt Fund – Minimum 80% investment in G-Secs or Government securities across maturity.
15.  Gilt Fund with 10 year Constant Duration – Minimum 80% investment in GSecs such that the duration of portfolio is 10 year.
16.  Floater Fund – Minimum 65% investment in floating rate instruments.

Tuesday, May 3, 2016

Tata Motors and Cargo Motors fined for selling used car as a new car

The following report from Times of India shows how difficult it is for consumers/customers to even expect fairness from such a "reputed" company belonging to the most respected business names in India.  Not only Tata Motors did not take any action against its dealer but went on to fight a legal battle for 10 years with one of its own customer, who had just wanted to get a car which he had paid for (nothing more).  

Here is the full report.

AHMEDABAD: A consumer court has pulled up Tata Motors Ltd and its city-based dealer Cargo Motors Pvt Ltd and fined them for fraudulently selling an used car to a customer as new.



While Tata Motors was held vicariously liable and asked to pay Rs1lakh to the customer, the dealer has been directed to return the price of the vehicle, Rs4.80 lakh, along with Rs60,000 towards compensation for harassment and litigation costs.

In this case, Bhavnagar's Prashant Vyas purchased a Tata Indigo car in October 2006 from Cargo Motors outlet on SG Road. Within two months, Vyas found multiple problems in the vehicle and it was not starting at all. A local mechanic informed him that the car was a second-hand vehicle. He later found out that the car had been sold first to one Deepak Shah in May 2006.


Vyas filed a complaint with a local consumer forum, which ordered Cargo Motors and Tata Motors, together, to return the car's price to the customer apart from compensation and litigation costs. Tata Motors's appeal against this order was dismissed by Gujarat Consumer Dispute Redressal Commission with a fine of Rs 5,000.

When Tata Motors challeng ed the lower courts' decisions, the National Consumer Dispute Redressal Commission (NCDRC) said that Tata Motors may not have been aware of the sale, but it was strange that the company was changing the engine of a vehicle on one hand and, on the other hand, claimed not to know for which vehicle the engine was being replaced."They (Tata) did not make an inquiry from the dealer as to why the dealer sold the vehicle for the second time. They did not take any action against the dealer.His agency was never cancelled. It is thus clear that the dealer and Tata Motors Ltd were working in cahoots with each other," the court order reads.

The court further observed, "The action of both the parties is below the belt. They made an attempt to lead a gullible customer up the garden path. The consumer swallowed the bait and drove the car to such an extent without knowing it is a second-hand car."

http://timesofindia.indiatimes.com/city/ahmedabad/Tata-Motors-Cargo-Motors-fined-for-selling-new-used-car/articleshow/52101516.cms