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what are the different types of mutual fund schemes
there are several ways to categorize mutual fund schemes
let's check out a few of them
first of all schemes can either be classified as open-ended schemes or close
Ended schemes 0:00:27.560,0:00:30.679 What is an open ended fund/scheme
and open ended fund/scheme means
that its open for business on all business days
you can invest or withdraw your money on all business days
liquidity
is the key feature of open ended scheme
and what are close ended funds/schemes
close ended funds/schemes have a stipulated maturity period for eg.
three months six months
A year
Or more
Unlike the open ended funds that’s open for business on all business days close
ended funds are open for purchase only during the initial launch and for redemtion
At specified periods of time either immediately post launch or later
depending on when the AMC specifies
Mutual fund schemes can be classified according to the investment objective
Such schemes maybe open-ended or Close-ended schemes
as described earlier
let's take a look at some variations
equity funds
the aim of growth funds is to provide capital appreciation over a medium to
long-term period
these funds invest in equity shares of companies and therefore offer the
investor the potential for growth
such schemes invest a major amount in equities
Equity schemes are suitable for investors
having the long term outlook
seeking appreciation over a period of time
Balanced funds
the aim of balanced funds is to provide the benefits of investing in both
equities as well as debt securities into proposal indicated in this offer
documents
these are appropriate for those investors
who are looking for growth without taking too much risk
these forms are also affected because of fluctuations in share prices in the
stock markets
however any piece of such models are likely to be less what i did
pill equity frogs
index clubs replicate the quote for your of a particular market index swatches w
season six
s_n_p_ nifty
etcetera
this makes tracking of investments simple
and easy to understand
any of these workshops kingswood wise awful
in accordance with the rise or fall in the index *** exactly but the same
percentage due to some factors noon has cracking error in technical terms
necessary disclosures in this regard on meeting the offer document of the mutual
fund scheme
income
or bond funds
in coupons invest in debt securities such as balls corporate debentures
government securities and money market instruments
such funds are less risky compared to equities keen's
these problems amount affected by the fluctuations in the equity markets
however opportunities of capital appreciation are also limited in such
funds
in compartments are generally preferred by individuals with the little risk
profile
money-market or liquid form
these forms are also in compounds
and they were being asked to provide easy liquidity
preservation of capital
at margaret encode
these schemes invest exclusively and safer short term instruments
such as treasury bills certificates of deposit commercial paper ncb a little
government securities eccentric
returns on these canyons don't fluctuate much compared to all the files
these forms of appropriate for corporate and individual investors as a means to
park their surplus funds for short periods of time
controls
these files invest exclusively in government securities
government securities have no default risk
any of these of these teens also fluctuate due to the change in interest
rates and other economic factors as is the case with income audit oriented skis
mutual fund investments are subject to market risks read always keen related
documents and information carefully before investing