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60. ''The consistency in the performance of Indian Mutual Fund's investment plans and services has been a major factor that has attracted may investors.'' In this context , explain the various investment plans offered in India.
The consistency in the performance of Indian Mutual Fund's investment plans and services has been a major factor that has attracted many investors .The Indian Mutual Fund Industry has been growing at a healthy pace of 16.68 percent for the past eight years and the trend will improve futher.With the entrance of new fund houses and the introduction of new Funds into the market, investors are now being presented with a broad array of Mutual Fund choices.Fund houses with the greatest brand equity are sure to capture the biggest spending investors .Today , Mutual Fund Industry, with about 34 players and more than 500 schemes, is one of the most preferred investment avenues in India .With the growth in the securities markets and tax advantages granted for investment in Mutual Fund units , MF is sure to develop more and more in the near future and become one of the most-sought-after investment avenues.The tremendous growth of Indian Mutual Fund Industry reflects the efficiency of the financial market and the trust investors have in the regulatory Environment.
Ans: Different Investment Plans that Mutual Funds offer in India are as follows:
Automatic Reinvestment Plan (ARP):Under this plan,dividends or capital gains are re-invested in purchasing additional units instead of playing the investors in the form of cash.
Automatic Investment Plan (AIP): It is a method of investing a fixed sum , on-a regular basis , in a Mutual Fund scheme.The investor is given the option of investing at a specified frequency of months in a specified scheme of the Mutual Fund for a constant sum of investment.
Automatic Withdrawal Plan (AWP): It allows the investors the facility to withdraw pre-determined amount/units from his Fund at a pre-determined interval
Systematic Transfer Plan (STP): It allows the investor to transfer on a periodic basis a specified amount from one scheme to another within the same Fund family, which means two schemes managed by the same Asset Management Company and belonging to the same Mutual Fund.