What are the various types of mutual fund schemes available to an investor?
Ans. There are a wide variety of Mutual Fund schemes that cater to your needs, whatever your age, financial position, risk tolerance and return expectations. By Structure: Open-Ended Schemes These do not have a fixed maturity. You deal directly with the Mutual Fund for your investments and redemptions. The key feature is liquidity. You can conveniently buy and sell your units at net asset value (“NAV”) related prices. Close-Ended Schemes Schemes that have a stipulated maturity period (ranging from 2 to 15 years) are called close-ended schemes. SEBI Regulations ensure that at least one of the two exit routes are provided to the investor. By Investment Objective Growth Schemes: Aim to provide capital appreciation over the medium to long term. These schemes normally invest a majority of their funds in equities and are willing to bear short- term decline in value for possible future appreciation. Ideal for: * Investors in their prime earning years. * Investors seeking growth over the long-
