A Mutual Fund may float several schemes which may be classified on the basis of its structure, its investment objectives and other objectives. |
| A. Mutual Fund schemes by structure |
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1. |
Open-Ended Funds: |
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Open-Ended fund scheme is open for subscription all through year. An investor can buy or sell the units at "NAV" (Net Asset Value) related price at any time. |
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2. |
Close-Ended Funds: |
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A Close-Ended fund is open for subscription only during a specified period, generally at the time of initial public issue. The Close-Ended fund scheme is listed on the some stock exchanges where an investor can buy or sell the units of this type of scheme. |
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3. |
Interval Funds: |
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Interval Funds combines both the features of Open-Ended funds and Close-Ended funds. |
| B. Mutual Fund schemes by Investment Objectives |
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1. |
Growth Funds: |
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The objective of Growth Fund scheme is to provide capital appreciation over the medium to long term. This type of scheme is an ideal scheme for the investors seeking capital appreciation for a long period. |
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2. |
Income Funds: |
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The Income Fund schemes objective is to provide regular and steady income to investors. |
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3. |
Balanced Funds: |
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The objective of Balanced Fund schemes is to provide both growth and regular income to investors. |
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4. |
Money Market Funds |
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The objectives of Money market funds is to provide easy liquidity, regular income and preservation of income. |
| C. Other Funds |
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1. |
Tax Saving Schemes: |
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The objective of Tax Saving schemes is to offer tax rebates to the investors under specific provisions of the Indian Income Tax Laws. Investment made under some schemes are allowed as deduction u/s 88 of the Income Tax Act. |
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2. |
Industry specific Schemes: |
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Industry specific schemes invest only in the industries specified in the offer document of the schemes. |
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3. |
Sectorial Schemes: |
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The scheme invest particularly in a specified industries or initial public offering. |
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4. |
Index schemes: |
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Such schemes links with the performance of BSE sensex or NSE. |
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5. |
Loan Funds: |
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Loan Funds charges a commission each time when you buy or sale units in the fund. |
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6. |
No-Loan Funds |
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No-Loan Funds does not charge a commission on purchase or sale of the units in the fund. |
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