AUM categorisation

Tue, 19 May 2026 00:00:00 +0000

AUM categorisation refers to the bucketing of mutual fund schemes by Assets Under Management (AUM) size, used by AMFI, industry analysts, and investors for comparative analysis, risk assessment, and capability evaluation. Indian mutual fund schemes span from small newly-launched schemes (~Rs 100 crore AUM) to flagship schemes managing Rs 50,000+ crore. The size band influences scheme behaviour, liquidity, manager flexibility, and operational characteristics.

For Indian retail investors, AUM size is a meaningful but not decisive factor in scheme selection. Larger schemes are not inherently superior, but size correlates with:

Multi-cap reclassification (2020)

Tue, 19 May 2026 00:00:00 +0000

In September 2020, SEBI mandated that multi-cap mutual fund schemes hold at least 25% in each of large-cap, mid-cap, and small-cap segments, restructuring the multi-cap category that had previously allowed AMCs greater discretion in market-cap allocation. The mandate caused significant industry consternation, AMC scheme reshuffling, and the eventual creation of the Flexicap category (which gave back the discretion that multi-cap had lost).

For Indian retail investors holding multi-cap funds in 2020, the mandate represented a significant change in scheme behaviour: many “multi-cap” funds had historically been large-cap-heavy in practice, and the new mandate forced them to invest at least 25% in small-caps, which represented a much riskier portfolio profile.

Categorisation on WebNotes

AUM categorisation

Multi-cap reclassification (2020)