A mutual fund scheme is a specific investment product launched by an AMC — a defined pool with its own investment objective, portfolio, NAV, and risk profile.
An AMC can operate dozens of schemes simultaneously. Each scheme has a unique name, investment mandate (e.g., largecap equity, gilt debt, balanced hybrid), its own NAV, expense ratio, fund manager, and benchmark. SEBI categorizes schemes into standardized categories (largecap, midcap, flexi cap, overnight, gilt, etc.) with strict portfolio mandates — ensuring investors know what each scheme type must hold.
Think of an AMC as a supermarket chain and each scheme as a product on the shelf. SBI Mutual Fund (the supermarket) offers SBI Bluechip Fund (largecap equity scheme), SBI Short Term Debt Fund (short-term debt scheme), SBI Equity Hybrid Fund, and many more. Each product has its own ingredients (portfolio), price (NAV), and use case. You pick schemes based on your goal, not the AMC brand.
AMCs launch schemes after SEBI approval — each scheme must fit a defined SEBI category.
Each scheme has Direct and Regular plan variants, and Growth and IDCW options.
Scheme parameters (investment universe, risk limits, benchmark) are locked in the Scheme Information Document (SID).
Investors buy/sell units of a specific scheme — not the AMC as a whole.