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Types of Mutual Funds

What is Equity Linked Savings Scheme (ELSS)?

What is Equity Linked Savings Scheme (ELSS)?

Equity Linked Savings Scheme

An Equity Linked Savings Scheme (ELSS) is an open ended mutual fund which provides investors both the better capital appreciation in longer term and the tax benefits as it comes under section (u/s) 80C of the Income Tax Act 1961. ELSS has a lock in period of 3 years that means investors can exit from these funds by selling only after completion of 3 years from the respective investment date.

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What are the various types of Mutual Funds?

What are the various types of Mutual Funds?

types of Mutual Funds

Today, there are varieties of mutual funds available for investment. Many of these funds are known as income fund, growth fund, liquid fund, balanced fund, tax saving fund, open ended fund, closed ended fund etc. These funds can be classified into two categories: either by the Maturity Plans or by the Investment Objectives. These funds are discussed below:-

Based on the Maturity Plan

Based on the maturity plan, there are three types of mutual fund schemes. They are known as Open ended Fund, Close ended Fund and Interval Fund. These funds are discussed below:- Continue reading