Why do Mutual Funds come out with different schemes?
A Mutual Fund may not, through just one portfolio, be able to meet the investment objectives of all their Unit holders. Some Unit holders may want to invest in risk-bearing securities such as equity and some others may want to invest in safer securities such as bonds or government securities. Hence, the Mutual Fund comes out with different schemes, each with a different investment objective.
Related Questions
- A scheme that invests primarily in other schemes of the same mutual fund or other mutual funds is known as a FoF scheme. TOP What are the different types of plans that any mutual fund scheme offers?
- All mutual funds schemes have different objectives and therefore their performance would vary. But are there some standards for comparison?
- How do I get the information regarding the forthcoming schemes of different mutual funds?