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3. ''The investors is also bothered about tracking the performance of various schemes .'' In this context explain briefly the various schemes available to a Mutual Fund investors in India.
Market savvy investors have to do a lot of market research before they make a direct entry into it . For many, it is difficult to identify the right kind of investment scheme and to decide the ideal entry and exit position to earn better and higher returns. Tracking the performance of various schemes also bothers the investors . The MF industry realize that manging investors' money is risky and that it has to be very cautious in its opertaion . The main challenge before this industry is attracing more number of retail investors and in ensuring continuous growth of the industy . Other challenges include -net mobilization of funds securing investors ' trust , and educating the investors about different funds on offer. Mutual Fund Industry has ato be innovative and competitive and its members have to strive for its constant developemnt and growth and its contionuous increase in number . There is no doubt that the industry has a long road ahead and the future looks bright for India's MF Industry.
Ans. In a very broad sense of the term , Mutual funds can be classified as open -ended Funds and close-ended Fund . An open-ended Fund remains open for issue and redemption of its units throughout its unbounded duration while a close -ended Fund is open for a limited period of time . Based on their different investment objectives , Mutual Funds are categorized as Growth Fund, Income Fund, Balanced Fund , Specialized Fund , and Tax -Saving Fund.There are some categories of Funds that are different from other Funds because of their investors profile. An example of such Funds is Pension Fund . Funds can also be classified based on the way they are managed . The corpus of the Fund may be managed either actively or passively.Active management of Funds involves gathering security specific information analyzing it, and selecting those securities that are most expected to fulfill the investment objectives .On the other hand , passive management of Funds involves selection of a market index. On the basis of chargeability of marketing costs to the scheme , Fund can be classified into load Funds and no-load Funds . Load Funds charge the marketing costs to the scheme , while the no-load Funds do not.