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p

„ Underlying value of a unit of mutual fund
„ Market Value of Assets ± liabilities

Load
„ 3rice of buying a unit
„ Entry Load/ Sales Load/ Front End
„ Exit Load/ Repurchase Load/ Back-end Load

ale/ Offer Price

„ 3rice for investing in a scheme.
„ Includes Entry Load
Œ
Ôepurchase/ Bid Price

„ 3rice at which a close-ended scheme repurchases its

units.
„ Includes a back-end load.

Ôedemption Price
„ 3rice at which open-ended schemes repurchase their
units and close-ended schemes redeem their units on
maturity.

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  Ô

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p
Ô

p
 p OBJ 


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 Ô

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OPp p
„ Gpen for subscription throughout the year
„ No Fixed Maturity
„ Liquidity

LO p
„ Gpen for subscription for a specific period
„ Traded in Secondary Market

p Ô
L 
„ Gpen-ended and close-ended schemes
„ The units may be traded on the stock exchange or may be
open for sale or redemption during pre-determined intervals at
NAV related prices.
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 p
Ô
 

º
uity Linked avings cheme
„ Investment in Equity, i.e. Shares
„ Lock-in period ± 3 years.
„ Rebate under Section 80C : a maximum of Rs 1 lakh.

º ector Funds
„ Investment in the stocks of specific sectors.

º ndex Funds
„ A specific market index.
„ Return: Approximately to the market mirrored.
-
º id-ap Funds

„ Investment in small / medium sized companies

„ Small : Market capitalization of up to Rs 500 Crores
„ Medium : Market capitalization between Rs 500 Crore
and Rs 1,000 Crore
„ E.g. Religare Mid Cap

º iversified 
uity

„ Spread their investments across sectors. e.g. 3harma,

Banking, Gil & Gas, Real estate, Telecom, etc.
„ Minimise the risk of over concentration in any one
particular sector
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º xchange raded Funds ( F)

„ Gpen ended mutual funds

„ Mirror the return of an index, a commodity or a basket
of assets.
„ Listed and traded on stock exchanges like stocks.
„ Investors gain broad exposure to indices or defined
underlying asset (commodity) at a lower cost.

º ]lobal Funds

„ Investment in companies across the globe

„ Global opportunities for diversification
„ Act as a hedge against inflation and currency risks
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 B F
p

„ The objective of these Funds is to invest in debt

papers.
„ Government authorities, private companies, banks
and financial institutions are some of the major
issuers of debt papers.
„ By investing in debt instruments, these funds ensure
low risk and provide stable income to the investors.

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º ]ilt funds

„ Investment in Government securities (Government of

India debt papers)
„ Zero Default risk but are associated with Interest Rate
risk.
„ Safe

º ncome Funds
„ Investment in debt instruments such as bonds, corporate
debentures and Government securities.

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º Ps
„ Invests maximum of their total corpus in debt
instruments while they take minimum exposure in
equities.
„ It gets benefit of both equity and debt market. These
scheme ranks slightly high on the risk-return matrix
when compared with other debt schemes.

º hort erm Plans ( Ps)

„ Investment horizon - three to six months.
„ Investment in short term papers like Certificate of
Deposits (CDs) and Commercial 3apers (C3s).
„ Some portion of the corpus is also invested in corporate
debentures.
||
º Li
uid Funds
„ Also known as Money Market Schemes, These funds
provides easy liquidity and preservation of capital.
„ These schemes invest in short-term instruments like
Treasury Bills, inter-bank call money market, C3s
and CDs.
„ These funds are meant for short-term cash
management of corporate houses and are meant for an
investment horizon of 1day to 3 months.
„ These schemes rank low on risk-return matrix and are
considered to be the safest amongst all categories of
mutual funds.

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 B L p F
p

„ Mix of both equity and debt funds.

„ To provide both income and capital appreciation
„ Equity part provides growth and the debt part provides
stability in returns.

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º ]rowth chemes
„ Are also known as equity schemes.
„ The aim of these schemes is to provide capital
appreciation over medium to long term.
„ These schemes normally invest a major part of their
fund in equities and are willing to bear short-term
decline in value for possible future appreciation.

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º ncome chemes
„ Are known as debt schemes.
„ The aim of these schemes is 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.

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º Balanced chemes
„ Balanced Schemes aim to provide both growth and income
by periodically distributing a part of the income and capital
gains they earn.
„ These schemes invest in both shares and fixed income
securities, in the proportion indicated in their offer
documents (normally 50:50).

º oney arket chemes

„ 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 inter-bank call money.

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