{"id":177,"date":"2019-07-08T06:44:13","date_gmt":"2019-07-08T06:44:13","guid":{"rendered":"https:\/\/malewarmutualfunds.wordpress.com\/?page_id=177"},"modified":"2022-06-22T11:28:52","modified_gmt":"2022-06-22T05:58:52","slug":"types-of-funds","status":"publish","type":"page","link":"https:\/\/www.malewarmutualfunds.com\/types-of-funds\/","title":{"rendered":"Types of Funds"},"content":{"rendered":"\n
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English<\/a><\/div>\n\n\n\n
Hindi<\/a><\/div>\n<\/div>\n\n\n\n

TYPES OF MUTUAL FUND SCHEMES<\/h1>\n\n\n\n

MUTUAL FUND SCHEME CLASSIFICATION<\/h2>\n\n\n\n

Mutual funds come in many varieties, designed to meet different investor goals. Mutual funds can be broadly classified based on \u2013<\/p>\n\n\n\n

  1. Organisation Structure \u2013 Open ended, Close ended, Interval<\/li>
  2. Management of Portfolio \u2013 Actively or Passively<\/li>
  3. Investment Objective \u2013 Growth, Income, Liquidity<\/li>
  4. Underlying Portfolio \u2013 Equity, Debt, Hybrid, Money market instruments, Multi Asset<\/li>
  5. Thematic \/ solution oriented \u2013 Tax saving, Retirement benefit, Child welfare, Arbitrage<\/li>
  6. Exchange Traded Funds<\/li>
  7. Overseas funds<\/li>
  8. Fund of funds<\/li><\/ol>\n\n\n\n
    \"\"<\/figure>\n\n\n\n

    SCHEME CLASSIFICATION BY ORGANIZATION STRUCTURE<\/h2>\n\n\n\n

    \u2022 Open-ended schemes <\/strong>are perpetual, and open for subscription and repurchase on a continuous basis on all business days at the current NAV.<\/p>\n\n\n\n

    \u2022 Close-ended schemes<\/strong> have a fixed maturity date. The units are issued at the time of the initial offer and redeemed only on maturity. The units of close-ended schemes are mandatorily listed to provide exit route before maturity and can be sold\/traded on the stock exchanges.<\/p>\n\n\n\n

    \u2022 Interval schemes <\/strong>allow purchase and redemption during specified transaction periods (intervals). The transaction period has to be for a minimum of 2 days and there should be at least a 15-day gap between two transaction periods. The units of interval schemes are also mandatorily listed on the stock exchanges.<\/p>\n\n\n\n

    SCHEME CLASSIFICATION BY PORTFOLIO MANAGEMENT<\/h2>\n\n\n\n

    Active Funds<\/strong><\/h3>\n\n\n\n

    In an Active Fund, the Fund Manager is \u2018Active\u2019 in deciding whether to Buy, Hold, or Sell the underlying securities and in stock selection. Active funds adopt different strategies and styles to create and manage the portfolio.<\/p>\n\n\n\n