TYPES OF MUTUAL FUNDS_
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TYPES OF MUTUAL FUNDS
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Based on Structure
 Open-ended Scheme- Offers unit for sale without naming any 
duration for redemption and they sell and repurchase schemes 
continuously. 
 Close-ended Schemes- In this scheme, the redemption 
period is specified. Once the units are marketed by mutual 
funds, then any transaction takes place in the secondary 
market only i.e. stock exchange and price are defined by 
forces of the market.
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Based on investment objectives
 Growth Fund: It gives capital appreciation over the medium to long- term. Such 
schemes usually invest a significant part of their corpus in equities and have 
high risk.
 Income Funds: Funds that invest in medium to long-term debt instruments 
issued by private companies, banks, financial institutions, governments, etc.
 Balanced Funds: These funds give both growth and regular income as these 
schemes invest in debt and equity.
 Money Market Funds: Money market invests in short-term i.e. maturing within 
1-year interest-bearing debt instruments.
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Based on Special Schemes
 Industry-Specific Schemes: Industry Specific Schemes invest only in 
the industries defined in the offer document. The investment of these 
funds is limited to particular industries like Infotech.
 Index schemes: In these schemes, the funds raised by mutual funds 
are invested in shares forming the Stock Exchange Index.
 Sectorial Schemes: Sectorial funds are those mutual funds that invest 
in a particular sector of the market. They invest in shares belonging to a 
particular sector which provides them fewer diversification opportunities.