Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

How are mutual funds classified based on their portfolios?

based Classified Mutual funds portfolios
0
Posted

How are mutual funds classified based on their portfolios?

0 CommentsAdd a Comment

1 Answer

0

Portfolio classification of mutual funds is done on the following basis: • Growth Funds • Investment objective: Capital appreciation of equity shares • Investment avenue: Equity shares of companies with high growth potential • For eg. Morgan Stanley Growth Fund • Income Funds • Investment objective: Providing safety of investments and regular income • Investment avenue: Bonds, debentures and other debt related instruments as well as equity shares of companies with high dividend payouts. There are 2 aspects of income funds viz. low investment risk with constant income and high investment risk generating high income. • For eg. Templeton Income Fund • Balanced Funds • Investment objective: Modest risk of investment and reasonable rate of return • Investment avenue: Judicious mix of equity shares, preference shares as well as bonds, debentures and other debt related instruments. • For eg. GIC Balanced Fund • Money Market Mutual Funds (MMMFs) • Investment objective: To take advantage of the

0 CommentsAdd a Comment
What is your question?

*Sadly, we had to bring back ads too. Hopefully more targeted.