Mutual Fund Schemes and Its Types

What are the schemes of Mutual Fund?

  1. Open Ended Scheme - An open-ended scheme is a scheme which is available for subscription and repurchase on a continuous basis on all working days. They do not have a fixed maturity period. Net Asset Value (NAV) or price of an open-ended scheme is declared on a daily basis. Investors can buy and sell the units of an open-ended scheme at prevailing NAV. Open-end schemes offers liquidity and convenience to the investors.
  2. Close-ended Scheme - A close-ended scheme has a fixed maturity period ranging from 3-7 years. These schemes remain available for subscription only during a specified period on their launch. Investors have an option to invest in such schemes either at the time of their launch or they can buy or sell the units of these schemes on the stock exchanges where the units are listed. Net Asset Value (NAV) of these schemes is disclosed generally on weekly basis.
  3. Interval Schemes - It is a combination of the characteristics of both open-ended and closed-end schemes. The units of an interval fund can be bought and sold only during a specified time interval, e.g. 15 days, 1 month, 3 months or any other time period, which is predetermined by the mutual fund. Like open-ended scheme they open every now and then and do not remain closed for long periods and like closed-end scheme, they do not allow continuous buying and selling facility by the mutual fund and remain closed for the time interval as pre-specified by the mutual fund and also their units are listed on stock exchanges.

What are the types of Mutual Funds?

  1. Equity / Growth Fund - It provides capital appreciation over the medium to long term. The investment of such fund is made majorly in equities/ stock market. It is best suited for those investors who have a long-term outlook and looking for capital appreciation over a longer period of time. NAVs of such fund are likely to be much volatile.
  2. Debt / Fixed Income Fund - It provides a regular and steady income to investors. The investment of such fund is made majorly in debt/ fixed income securities. It is best suited for those investors who require a regular income during the period of investment.
  3. Money Market / Liquid Fund It provides liquidity, protects capital and generates moderate income. The investment of such fund is made majorly in money market instruments like Treasury Bills, Certificates of Deposit, Commercial Papers, Repurchase Agreements and Inter-Bank Call Money. It is considered as safe as bank deposit yet providing a higher yield. It is the safest among all types of mutual fund investments. It is best suited for the retail low income investors.
  4. Balanced / Hybrid Fund It provides both growth and regular income to the investors. The investment of such fund is made both in equities and fixed income instruments as indicated in its offer document. It is best suited for those investors who are looking for moderate growth with regular income. NAVs of such fund are likely to be less volatile compared to pure equity funds.
  5. Index Fund The investment of such fund is made in the securities in the same weightage comprising of an index. It replicates the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50 index (Nifty), etc. The NAVs of such fund will go up or down in accordance with the rise or fall in the chosen index. It follows a passive investment strategy.
  6. Sector fund - The investment of such fund is made in the securities of those sectors or industries as specified in the offer document e.g. Software, Pharmaceuticals, Real Estate, FMCG, etc. This fund is more risky in comparison with a diversified fund.
  7. Thematic Fund - The investment of such fund is made across the sectors related to the common theme like Multi-Sector, Infrastructure, International, Commodity, etc.
  8. Tax Saving fund (ELSS)- Equity Linked Savings Schemes (ELSS) offers tax rebate to the investors under sec 80C of the Income Tax Act, 1961. The investment of such fund is made majorly in equities/ stock market and it has a lock-in period of 3 years.
  9. Govt. Securities Fund - The main objective of such fund is to generate credit risk-free. The investment of such fund is made exclusively in government securities issued by the Central Government and/or State Government. Government securities have no default risk. It is best suited for those investors who are risk averse.
  10. Fund of Funds (FoF) - The investment of such fund is made primarily in other schemes of the same mutual fund or other mutual funds. It provides greater diversification through one scheme and spreads risks.
  11. Capital Protection Fund - vThe investment of such fund is primarily made in fixed income securities maturing in line with the tenure of the scheme and small portion of the fund is invested in equities which provides capital appreciation. It provides capital protection to the investors.
  12. RGESS Fund - Rajiv Gandhi Equity Savings Scheme (RGESS) fund offers tax deduction up to Rs 25,000 a year under Section 80CCG over and above the Rs 1 lakh exemption under Section 80C of Income Tax Act, 1961. The motive of RGESS is to motivate small investors to invest their savings in the capital markets. The maximum investment allowed under this scheme for claiming deduction under RGESS is Rs. 50,000 and the investor is eligible to get a 50% deduction of the amount invested under this scheme. The investment is locked-in for a period of 3 years from the date of purchase.
  13. Fixed Maturity Plans (FMPs) It has a defined maturity period. The investment of such fund is made in debt instruments which mature in line with the maturity of the scheme, thereby earning through the interest component (coupons) of the securities in the portfolio. It is a passive fund and active trading of debt instruments does not take place which results into lower expenses charged to the scheme.

Upcoming Bank Holidays

2017 January 26 is a bank holiday in Andaman And Nicobar Island due to Republic Day.
2017 February 01 is a bank holiday in Andaman And Nicobar Island due to Saraswati Puja (Shree Panchami)/Basant Panchami.
2017 February 10 is a bank holiday in Chandigarh due to Guru Ravidas's Birthday.
2017 February 15 is a bank holiday in Manipur due to Lui Ngai-Niw.

 Quick IFSC Search
 
 Quick MICR Search
 
 Quick BSR Search
 

Bank Interest Rates

ALL INDIA BANKS LIST
AB Bank Ltd ABN-AMRO Bank N.V Abu Dhabi Commercial Bank Airtel Payments Bank Limited
Allahabad Bank American Express Banking Corp Andhra Bank Antwerp Diamond Bank NV
AXIS Bank Bandhan Bank Limited Bank Of America Bank Of Bahrain & Kuwait B.S.C
Bank Of Baroda Bank Of Ceylon Bank Of India Bank Of Maharashtra
Bank Of Nova Scotia Bank Of Tokyo Mitsubishi Limited Barclays Bank Bharatiya Mahila Bank
BNP Paribas Calyon Bank Canara Bank Catholic Syrian Bank Limited
Central Bank Of India Chinatrust Commercial Bank Limited Citi Bank City Union Bank Limited
Corporation Bank DBS Bank Ltd DCB Bank Limited Dena Bank
Deutsche Bank Dhanalakshmi Bank Equitas Small Finance Bank Limited Exim Bank Export Import Bank Of India
Federal Bank HDFC Bank HSBC Bank HSBC BANK OMAN SAOG
ICICI Bank IDBI Bank IDFC Bank Limited Indian Bank
Indian Overseas Bank IndusInd Bank Jammu And Kashmir Bank Limited JP Morgan Bank
JSC VTB Bank Karnataka Bank Limited Karur Vysya Bank Kotak Mahindra Bank Limited
Krung Thai Bank Public Co. Ltd Laxmi Vilas Bank Mashreqbank Psc Mizuho Corporate Bank Limited
Oman International Bank SAOG Oriental Bank Of Commerce Punjab And Sind Bank Punjab National Bank
RBL Bank Limited SBM Bank Mauritius Limited Shinhan Bank Societe Generale
Sonali Bank South Indian Bank Standard Chartered Bank State Bank Of Hyderabad
State Bank Of Patiala State Bank Of Bikaner And Jaipur State Bank Of India State Bank Of Mysore
State Bank Of Travancore Syndicate Bank Tamilnad Mercantile Bank Limited The Nainital Bank Limited
UBS AG UCO Bank Union Bank Of India United Bank Of India
Vijaya Bank Yes Bank Limited