2B CHAPTER 10

The mutual fund is an umbrella entity, and there are several funds/schemes/plans with distinct objectives underneath this entity.

Investors who are willing to take higher risks for higher level of return tend to choose equity products.

Investors who seek regular income and a lower level of risk tend to choose equity products.

Any scheme of a Mutual Fund must have atleast 20 investors and contribution of a single investor should not exceed 25 percent of the AUM.

No scheme shall have AUM of less than Rs. 20 crore. The minimum AUM has to be maintained on a continuous basis

SEBI has made it mandatory for units of all closed-end schemes to be listed on stock exchanges to provide liquidity.

An Interval fund is a hybrid product combining the features of both an open-ended and closeended fund.

Any change in the risk-o-meter of a scheme should be communicated to its respective unit holders

Debt funds invest in fixed income securities

Investors are allotted units against their investment at the face value of the units.