MUTUAL FUND BY INVESTMENT OBJECTIVE

MUTUAL FUND

BY INVESTMENT OBJECTIVE

Growth schemes

Aim to provide capital appreciation over the medium to join 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.

These schemes are not for investors seeking regular income or needing their money back in the short term. Ideal for –

  • Investors in their prime earning years.

  • Investors seeking growth over the long term.

Income Schemes:- Aim to provide regular and steady income to investors. These schemes generally invest in fixed income securities such as bonds and corporate debentures.

Capital appreciation in such schemes may be limited.

Ideal for:-

  • Retired people and others with a need for capital stability and regular income.

  • Investors who need some income to supplement their earnings.

Balanced Schemes

Aim to provide both growth and income by periodically distributing a part of the income and capital gains they earn. They invest in both shares and fixed income securities in the proportion indicated in their offer documents. In a rising stock market, the NAV of these schemes may not normally keep pace, or fall equally when the market balls.

Ideal for :-

  • Investors looking for a combination of income and moderate growth.

Money Market/ Liquid Schemes:

Aim to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer, short-term instruments such as treasury bills, certificates of deposit, commercial paper and interbank call money.

Returns on these schemes may fluctuate, depending upon the interest rates prevailing In the market.

Idea for:

  • Corporate and individual investors as a means to park their surplus funds for short periods or awaiting a more favourable investments alternative.

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