Other Mutual Fund Types

1. Index Funds/Exchange Traded Fund: An open-ended scheme replicating/tracking a specific index. This minimum investment in securities of a particular index is 95 percent of total assets.

2. Fund of Funds (Overseas/Domestic): An open-ended fund of fund scheme investing in an underlying fund. The minimum investment in the underlying fund is 95 percent of total assets.

3. Fixed Maturity Plans: are a kind of close-ended debt fund where the duration of the investment portfolio is closely aligned to the maturity of the scheme. Being close-ended schemes, post NFO (New Fund Offer), you cannot invest in these schemes.

4. Capital Protection Oriented Funds: are closed-end hybrids funds. In these types of funds, the exposure to equity is typically taken through the equity derivatives market. The portfolio is structured in such a way, that a portion of the principal amount is invested in debt instruments so that it grows to the principal amount over the term of the fund. For example, Rs.90 may be invested for 3 years to grow into Rs.100 at maturity. This provides protection to the capital invested. The remaining portion of the original amount is invested in equity derivatives to earn higher returns.

5. International REITs: A fund that invests in Real Estate Investment Trusts abroad. Thus gives an exposure to the investor both to international funds plus the commercial real estate sector.