Mutual fund schemes may be categorized on the basis of its structure and its investment purpose.

Open-end Mutual Funds
An open-end mutual fund is available all through the year. These mutual funds do not have a maturity that is fixed. Investors can easily buy and sell the units at Net Asset Value ("NAV") linked prices. The main feature of open-end schemes is its liquidity.

Closed-end Mutual Funds
A closed-end fund has a fixed maturity period which generally ranges from 3 to 15 years. The fund is open only during a particular period. Investors can invest in this scheme when there is initial public issue and after this public issue they can buy or sell the units of the scheme on the basis of stock exchanges where these are listed. In order to provide a way out route to the investors, some close-end funds give a choice of selling the units back to the Mutual Fund through a regular repurchase at NAV linked prices.  

Interval Mutual Funds
Interval mutual funds are the combination of the some features of open-ended and close-ended plans. They are open for sale or exchange during a pre-determined period at NAV related prices.

Growth Funds
The main aim of growth funds is to give capital gratitude over the medium to long- term period. Such schemes normally invest a major part of their quantity in equities. It has been proved that returns from the stocks, have outperformed major kind of investments which are held for a long time. Growth schemes are very good for investors who have a long-term view in seeking growth over a certain period of time.

Income Funds
The main plan of income funds is to give regular and constant income to investors. These types of plans are normally invested in fixed income securities, like bonds, corporate debentures and Government securities. Income Funds are perfect for capital constancy and regular income.

Balanced Funds
The main aim of balanced funds is to offer growth as well as a regular income. These types of schemes occasionally hand out a part of their earning and invest in equities as well as fixed income securities in the quantity pointed out in their offer documents. In an increasing stock market, the NAV of these plans may not keep a normal speed or drop equally when the market go down. These are perfect for investors looking for a combination of both income and moderate growth.

Money Market Funds
The aim of money market fund is to provide easy liquidity, conservation of capital and reasonable income. These schemes generally invest in safer short-term method such as treasury bills, deposit certificates, business-related paper and inter-bank call money. Profits on these schemes may vary depending upon the interest rates existing in the market. These are best for Corporate and individual investors who can easily keep their excess funds for short periods of time.

Load Funds
A Load Fund charges a commission for access or exit. This means when you buy or sell units each time in the fund, a commission has to be paid. In general, entry and exit loads range from 1% to 2%. It is better to pay the load if you want the fund to have a good performance history.

No-Load Funds
A No-Load Fund means commission is not charged on the purchase or sale of units in the fund. The main advantage of a no load fund is the entire amount is used.