Explain briefly the capital protection oriented scheme of a mutual fund.

Capital Protection Oriented Scheme is a scheme which protects the capital invested in the mutual fund through suitable orientation of portfolio structure. A capital protection-oriented scheme is typically a hybrid scheme that invests significantly in fixed-income securities and a part of its corpus in equities. These are closed-end schemes that come in tenures of three and five years. Regulation 38A of the SEBI (Mutual Funds) Regulations, 1996 provides that a capital protection oriented scheme may be launched, subject to the following: the units of the scheme are rated by a registered credit rating agency from the viewpoint of the ability of its portfolio structure to attain protection of the capital invested therein; the scheme is close ended; and there is compliance with such other requirements as may be specified by SEBI in this behalf.