Solution oriented schemes
Solution oriented schemes are similar to goal wise investing. Currently these schemes cover two goals like child education and retirement planning, they have a minimum lock-in period of 5 years.
What are the types of solution-oriented schemes?
Retirement funds
This scheme has a minimum lock-in period of 5 years or till retirement age whichever is earlier.
Children’s funds
This scheme has a minimum lock-in period of 5 years or till the attainment of majority age of the child whichever is earlier.
Other schemes:
Index funds
Index fund is a fund that invests in an Index. Index funds are passively managed mutual funds that perform in tandem with the index they track i.e. Nifty or Sensex. Simply stating, index funds passively track the performance of index.
Fund of funds
A Fund of Funds scheme is a mutual funds scheme that invests in other mutual funds schemes rather than in securities.