TYPES OF MUTUAL FUNDS and SCHEMES

[abhishreshthaa]

Mutual Fund Types

GROWTH/EQUITY ORIENTED SCHEMES

• MEDIUM TO LONG TERM
  
• PROVIDES CAPITAL APPRECIATION
  
  
• HIGH RISK
  
  
• DIFFERENT OPTIONS TO INVESTORS
  

IDEAL FOR

• INVESTORS IN PRIME EARNING YEARS
  
  
• INVESTORS SEEKING GROWTH IN LONG TERM

INCOME/DEBT ORIENTED SCHEMES

• PROVIDE STEADY AND REGULAR INCOME
  
  
• INVEST IN BOND, DEBENTURES ,GSECSETC
  
  
• LESS RISKY TO GROWTH SCHEMES
  
  
• NAV AFFECTED BY INTRES RATES

IDEAL FOR


RETIRED PEOPLE AND OTHERS WITH A NEED FOR STABILITY AND REGULAR INCOME
INVESTORS WHO NEED SOME INCOME TO SUPPLEMENT THEIR EARNINGS


BALANCED FUNDS/SCHEMES

• PROVIDE BOTH GROWTH AND REGULAR INCOME
  
  
• 40:60 % ;DEBT:EQUITY
  
  
• NAV LESS VOLATILE AS COMPARED TO EQUITY FUNDS

IDEAL FOR

• INVESTORS LOOKING FOR A COMBINATION OF INCOME AND MODERATE GROWTH
  
  
• MONEY MARKET/LIQUID FUNDS
  
  
• PROVIDE EASY LIQUIDITY,PRESERVATION OF CAPITAL AND MODERATE INCOME
  
  
• INVESTS IN SAFER INSTRUMENTS LIKE TBILLS,CD’S,CP’S,ETC

IDEAL FOR

• CORPORATE AND INDIVIDUAL INVESTORS
  
  
• AS A MEANS TO PARK THEIR SURPLUS FUNDS FOR SHORT PERIODS.

SPECIAL SCHEMES

• GILT FUNDS
  
  
• NAV FLUCTUATES DUE TO INTERST RATES AND OTHER ECONOMIC FACTORS
  
  
• NO DEFAULT RISK
  
  
• INDEX FUNDS
  
  
• SECTOR FUNDS

IDEAL FOR

INVESTORS WHO ARE SATISFIED WITH THE RETURNS APPROX. EQUAL TO THAT OF THE
INDEX/SECTOR


Investment plans and serivices

• Growth option
  
  
• Automatic reinvestment plan
  
  
• Reinvestment of dividend at ex-NAV
  
  
• Systematic investment plan (SIP)
  
  
• Rupee cost averaging
  
  
• Systematic withdrawal plans
  
  
• Diff. from MIP .Principal given back also by way of redemption while MIP only give the income
  
  
• Systematic transfer plan
  
  
• Transfer on periodic basis a specific amount from one scheme to another