Upstox offers various types of mutual funds. Additionally, all the regular mutual fund schemes in the retail segment are tailored specifically for different purposes. For example, tax savings, growth-oriented, etc.
Upstox MF platform offers different types of mutual funds which vary depending on the scheme and plan type. There are more than 2,000 mutual funds available on the Upstox MF platform. Therefore, you can choose from the mutual funds that suit your financial goals and expectations.
An open-ended scheme is a type of mutual fund repurchased at continuous intervals. These types of mutual funds don’t have a pre-determined date of maturity. Additionally, investors of open-ended schemes can purchase or sell units at daily declared prices.
An interval scheme is a mixture of open-ended and close-ended schemes. Individual units can be sold at intervals decided prior to purchase of units. Hence, the units can also be traded on the stock exchange.
Close-ended schemes mature at a pre-determined date. Basically, the investors can get their investments back at the end of the time period. These returns are calculated on the basis of the NAV at the time.
Dividend mutual funds invest in companies that give dividends to their shareholders. Dividends are profits that companies give back to their shareholders. Investors get dividend returns regularly in a dividend-focused mutual fund scheme. Similarly, investors choose to re-invest the dividend. Some even purchase additional shares in the mutual fund.
Growth mutual funds include stocks of companies that focus on increasing their capital value. The dividend is almost next to nothing in such a fund. Thus, companies under such a plan invest their profits into research and development. These companies focus on acquiring new projects and expanding their reach.
Mutual funds allot new units to investors for free under a bonus plan. The number of units held by an investor increase. Moreover, the NAV reduces depending on the ratio of “bonus units” and purchased units.