Mutual FUNDS in order to CATER to a range of investors, have various investment plans. Some of the important investment plans include:

Growth Plan 

Under the Growth Plan, the investor realises only the capital appreciation on the investment (by an increase in NAV) and does not get any income in the form of dividend. 

Income Plan 

Under the Income Plan, the investor realises income in the form of dividend. However his NAV will fall to the extent of the dividend. 

Dividend Re-investment Plan 

Here the dividend accrued on mutual funds is automatically re-invested in purchasing additional units in open-ended funds. In most cases mutual funds offer the investor an option of collecting dividends or re-investing the same. 

Systematic Investment Plan (SIP) 

Here the investor is given the option of preparing a pre-determined number of post-dated cheques in favour of the fund. He will get units on the date of the cheque at the existing NAV. For instance, if on 25th March, he has given a post-dated cheque for June 25th, he will get units on 25th June at existing NAV.

Systematic Withdrawal Plan 

As opposed to the Systematic Investment Plan, the Systematic Withdrawal Plan allows the investor the FACILITY to WITHDRAW a pre-determined amount/units from his fund at a pre-determined interval. The investor’s units will be redeemed at the existing NAV as on that day.

Retirement Pension Plan 

Some SCHEMES are linked with retirement pension. Individuals participate in these plans for themselves, and corporates for their employees.

Insurance Plan 

Some schemes launched by UTI and LIC offer insurance cover to investors.

Mutual Funds in order to cater to a range of investors, have various investment plans. Some of the important investment plans include:

Growth Plan 

Under the Growth Plan, the investor realises only the capital appreciation on the investment (by an increase in NAV) and does not get any income in the form of dividend. 

Income Plan 

Under the Income Plan, the investor realises income in the form of dividend. However his NAV will fall to the extent of the dividend. 

Dividend Re-investment Plan 

Here the dividend accrued on mutual funds is automatically re-invested in purchasing additional units in open-ended funds. In most cases mutual funds offer the investor an option of collecting dividends or re-investing the same. 

Systematic Investment Plan (SIP) 

Here the investor is given the option of preparing a pre-determined number of post-dated cheques in favour of the fund. He will get units on the date of the cheque at the existing NAV. For instance, if on 25th March, he has given a post-dated cheque for June 25th, he will get units on 25th June at existing NAV.

Systematic Withdrawal Plan 

As opposed to the Systematic Investment Plan, the Systematic Withdrawal Plan allows the investor the facility to withdraw a pre-determined amount/units from his fund at a pre-determined interval. The investor’s units will be redeemed at the existing NAV as on that day.

Retirement Pension Plan 

Some schemes are linked with retirement pension. Individuals participate in these plans for themselves, and corporates for their employees.

Insurance Plan 

Some schemes launched by UTI and LIC offer insurance cover to investors.