These schemes are classified by structure like Open ended or close ended schemes
Further, the schemes are classified based on their investment objectives, such as

Equity: Equity schemes primarily invest in shares. Based on the objective investments could be in growth stocks where earnings growth is expected to be high or value stocks where the view of the fund manager is that current valuations in the markets do not reflect the intrinsic value. Various kinds of equity schemes are:
Equity Diversified: All non-theme and non-sector funds can be classified as equity diversified funds.
Mid Cap: These funds invest in companies from different sectors. However they put a restriction in terms of the market capitalization of a company, i.e., they invest largely in BSE Mid Cap Stocks.
Equity Linked Saving Scheme (ELSS): ELSS is an open-ended equity growth scheme that is offered by mutual funds in line with existing ELSS guidelines. The investments under this type of scheme are subject to a lock-in period of 3 years and, as per the Finance Act 2005, are allowed the benefit of income deduction up to Rs 1, 00,000.
Thematic: These schemes invest in various sectors but restrict themselves to a particular theme e.g., services, exports, consumerism etc.
Sector Specific: These are schemes that invest in a particular sector for example IT. They have a high degree of risk associated with them as if that a particular sector does not perform then their returns will suffer.
Index Funds: Index funds replicate the portfolio of a particular index such as the BSE sensitive index or Nifty etc. These schemes invest in the securities in the same weight age comprising of an index. NAV’s of such scheme would rise or fall in accordance with the rise or fall in the index .
Debt or Income Schemes: Such a fund invests in interest bearing securities mainly government securities and corporate bonds. This fund earns returns for its investors from interest income on its investments and profits on trading securities. In terms of risk, this type of fund is the least risky.
Money Market or Liquid schemes: These schemes invest in short term debt instruments issued by the government, corporate or banks. These are typically investments in short term papers like the CPs and CDs etc.
Gilt Fund: These funds invest exclusively in government securities. Government securities have no default risk, NAV of these schemes also fluctuate due to change in interest rates and other economic factors.
Fixed Maturity Plans: Fixed Maturity Plans are mutual funds schemes with a pre-specified tenure. The basic objective of FMPs is to generate steady returns over a fixed period, thus immunizing investors against market fluctuations. FMP is an ideal product for all types of investors seeking to provide benefit across different parameters such as different maturities, minimum risk and tax efficient better returns. Fixed Maturity Plans are mutual funds schemes with a pre-specified tenure.
Fixed Maturity Plans: Fixed Maturity Plans are mutual funds schemes with a pre-specified tenure. The basic objective of FMPs is to generate steady returns over a fixed period, thus immunizing investors against market fluctuations. FMP is an ideal product for all types of investors seeking to provide benefit across different parameters such as different maturities, minimum risk and tax efficient better returns. Fixed Maturity Plans are mutual funds schemes with a pre-specified tenure.
Balanced Schemes: Balanced schemes invest in a mix of equity and debt. The debt investments ensure a basic interest income, which the fund manager hopes to top with a capital gain from the investment in equities. However loses can eat into basic interest income and capital.
Monthly Income Plans: MIPs are suitable for conservative investors who along with an exposure to debt do not mind a small exposure to equities. These funds aim to provide consistency in returns by investing a major part of their portfolio in debt market instruments with a small exposure to equities. Thus an MIP would be suitable for conservative investors who along with protection of capital seek some capital appreciation as MIPs have an exposure to equities. However the monthly income is not assured.
Monthly Income Plans: MIPs are suitable for conservative investors who along with an exposure to debt do not mind a small exposure to equities. These funds aim to provide consistency in returns by investing a major part of their portfolio in debt market instruments with a small exposure to equities. Thus an MIP would be suitable for conservative investors who along with protection of capital seek some capital appreciation as MIPs have an exposure to equities. However the monthly income is not assured.

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