Mumbai, June 13: After the success of short-term plans, mutual funds are now looking at schemes which offer investment opportunities between income funds and STPs. Standard Chartered Mutual Fund has now become the first to come out with a medium term plan (MTP). Medium term plans are trying to position themselves as investment vehicles for four months to one year which will be able to manage volatility in the medium term for investors.
The new scheme named Grindlays Super Saver Income Fund (Medium Term Plan) is targeting investors with an investment time horizon of 4 to 12 months and bridge the gap between income fund and STPs. The mutual funds were tailoring products to suit investors of various time horizons. Cash/liquid funds are meant for parking funds for 7 to 30 days, while STPs are for investments from 2 to 5 months and income funds are for those looking for investment over a year and above.
Bureau Report