Share Market

A Wide variety of Mutual Fund Schemes exists to cater to different needs and is categorized by Structure, Investment objective and other schemes.

By Structure

• Open Ended Scheme: These do not have a fixed maturity and one can conveniently buy and sell their units at Net Asset Value(NAV) related prices, at any point of time.
• Close Ended Scheme: Schemes that have a stipulated maturity period (ranging from 2 to 15 years) are called close ended schemes. One can invest in the scheme at the time of the initial issue and thereafter can buy or sell the units of the scheme on the stock exchanges where they are listed.
• Interval Scheme: These combine the character of open-ended and close-ended schemes. They may be traded on the stock exchange or may be open for sale or redemption during predetermined intervals.

By Investment Objective

• Growth Scheme: They aim to provide capital appreciation over the medium to long term and normally invest a majority of their funds in equities. They are ideal for investors in their prime earning years.
• Income Scheme: They aim to provide regular and steady income to investors and generally invest in fixed income securities. These are ideal for retired people.
• Balanced Scheme: They provide both growth and income by periodically distributing a part of the income and capital gains they earn and invest in both shares and fixed income securities in the proportion indicated in their offer documents. These are best for investors looking for a combination of income and moderate growth.
• Money Market Scheme: They provide easy liquidity, preservation of capital and moderate income and generally invest in safer and short term instruments. They are perfect for customers to invest their surplus funds for short periods.

Other Scheme

• Tax Saving Scheme: They offer tax benefits to the investors and promote long term investment in equities.
• Index Scheme: They attempt to duplicate the performance of a particular index such as the BSE Sensex, or the NSE 50 (NIFTY).
• Sector specific scheme: They invest in specific sectors such as Technology, Banking, Pharma.
• Special Schemes: Fixed Maturity Plans, Exchange Traded Funds, Capital Protection Oriented Schemes, Gold Exchange Traded Funds, Quantitative Funds, Funds investing Abroad, and Funds of Funds come under Special Schemes.

The investor picks up a Mutual Fund that suits him best and gives him maximum return.