How are schemes classified according to Investment Objective?
A scheme is classified as growth scheme, income scheme, or balanced scheme considering its investment objective. Such schemes may be open-ended or close-ended schemes as described earlier. Such schemes may be classified mainly as follows: Growth / Equity Oriented Scheme – Objective of growth funds is to provide capital appreciation over a time period. These schemes normally invest major corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. Income / Debt Oriented Scheme – Income or Debt funds aim to provide regular and steady income. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities, money market instruments, securitized debt and fixed income derivatives. Such funds are assumed to be less risky compared to equity schemes as these funds are
