Equity, Debt, Hybrid, Solution Oriented and Other Schemes
The portfolio of a mutual fund scheme will be driven by the stated investment objective of the scheme. A scheme might have an investment portfolio invested largely in equity shares and equity-related investments such as convertible debentures. The investment objective of such funds is to seek capital appreciation through investment in these growth assets. Such schemes are called equity schemes.
Schemes with an investment objective of regular income generation limits them to investments in debt securities such as Treasury Bills, Government Securities, Bonds and Debentures are called debt funds.
Hybrid funds have an investment charter that provides for investment in both debt and equity. Some of them invest in gold along with either debt or equity or both.
Schemes with an investment objective that is directed towards a particular goal aimed in future such as retirement solution or investments for children are called Solution Oriented Schemes.
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