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Various segments of mutual funds INDIA

INTRODUCTION-

mutual funds in India is a kind of mutual fund that is managed professionally. In mutual funds in India, the money is collected from a large number of investors and is invested in bonds, shares and other securities

The fund manager of mutual funds in India receives interest income which is then divided among individual investors based on the number of units they hold. the value of mutual fund share is calculated on a daily basis and it is known that per share net asset value (NAV).

Classification of Mutual Funds in India was made on the basis of their investment objectives and structure. Classification of Mutual Funds in India in the key types such as income funds, sector funds, large funds from the CAP, fixed income, mutual funds and interval funds, closed, and the tax funds savings. Income Fund of India are a kind of mutual fund whose objective is to provide investors with a steady income and regular. In general, they invest their capital in securities such as corporate debentures, bonds and government securities.

Sector specific funds in India are funds that invest in specific sectors only. They attach importance to a single sector such as pharmaceuticals, software, infrastructure and health care. Large CAP funds in India are a kind of mutual fund that invests in stocks of large blue chip companies. Fixed Income Funds in India makes investments in debt securities that have been issued either by banks, government or business. They are also known as income funds and debt funds.

Fund range in India are a combination of both open and closed ended funds. They offer investors the flexibility because they can be sold and redeemed at the time that has been predetermined. Closed-end funds in India are a kind of mutual fund that has a deadline that has been determined and which generally ranges from three to fifteen years. Tax saving funds in the form of tax rebates of India offers to the investor under Section 88 income tax. They are also known as a savings plan linked to actions.

INTERVAL FUND-

Fund range in India combine the characteristics of these two funds nearly completed and open ended funds. This means that the funds apart in India can be bought and sold at the time that has been predetermined. Fund range in India are usually redeemed every six or twelve months or has been unveiled in the annual report and the fund's prospectus. Fund range in India are sold and redeemed at prices that are linked to the Net Asset Value (NAV)

The fund company's mutual funds that have launched in India apart are:

• Mutual Fund Birla Sun Life
• Prudential ICICI Mutual Fund
• ABN AMRO Mutual Fund

Taxation of Savings FUND

Tax savings fund in India to offer tax rebates to investors under the Income Tax Act, section 88 and they are also known as savings plans linked to actions. Tax Savings Fund in India generally have a lock-in period which is generally three years. Following this, the fund manager does not care about such factors as pressure from the redemption of fund performance for a short period, and so does his work keeping in view the long-term goal. The fund manager of the tax saving funds in India invests money in instruments that are linked to equity.

Tax saving funds in India are suitable for investors who want to increase their investments and also want to benefit from tax rebates. The advantage of tax savings funds in India they give investors the opportunity to invest in an avenue that is linked to markets and benefit the same time claim taxes. Dividends as the arms.