Indian Mutual Fund Schemes

Varieties of Mutual Funds in India

These days, various types of Indian Mutual Fund Schemes have come up which provide to a range of financial needs like tax benefits, financial position, risk tolerance, return expectations and others. Here is a catalog of the diverse types of Mutual Fund in India.

Indian Mutual Fund Schemes

Close-ended Mutual Fund Schemes - Close -ended schemes are those which have a particular maturity period (which generally ranges from 3 - 15 years). At the time of initial public issue one can make straight investment in the scheme and can also get the benefit of buying and selling of the units. Due to demand and supply in the market & the policy holders' outlook and assorted other market factors, the market price may vary from Net Asset Value (NAV). Some of the close-ended fund schemes in India are ING Vysya Dynamic Asset Allocation Fund. Birla sunlife capital protection fund and Kotak Dynamic Asset Allocation Scheme.

Open-ended Mutual Fund Schemes - There is no rigid maturity for the open-ended mutual fund schemes. One has to contract directly with the Mutual Fund for his investments & redemptions. Liquidity is the key feature here. Buying and selling of the units becomes suitable at the related prices of the net asset value (NAV). Some of the open-ended fund schemes in India are Birla Sun Life infrastructure fund, Franklin Templeton Blue-chip Fund, HDFc top 200, HDFC equity fund (G) etc.

Tax-saving Mutual fund Schemes - Individuals, companies, partnership firms, and body corporate are some of the investing parties in the different Mutual Funds available in the market principally to enjoy the remuneration of tax saving. The Indian Mutual Funds are guided by principles of SEBI. It provides certain tax benefits to the fund holders. It is compulsory that tax benefits should be declared in a column which reads "objects of the offering". Birla Sun life Tax Relief-96, SBI Mutual Funds, HDFC Tax Saver, Prudential ICICI and Bajaj Capital are a number of the tax saving Mutual fund companies in India.