Mutual Funds
Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of securities such as
- Stocks
- Bonds
- Debentures and other securities.
These funds are managed by professional fund managers who make investment decisions on behalf of investors based on the fund’s objectives and strategy. The income earned through these investments and the capital appreciation realized are shared to its unit holders in proportion to the number of units owned by them.
Advantages of Mutual Funds
Access to a diversified portfolio of securities, reducing individual investment risk.
Experienced fund managers handle the day-to-day investment decisions, saving investor’s time and effort required for research and analysis.
Provides liquidity, allowing investors to buy or sell shares at the current net asset value (NAV) on any business day.
Low minimum investment requirements, making them accessible to a wide range of investors.
Disclose their holdings, investment strategy, and performance regularly, providing transparency to investors.
Offer a wide range of investment options catering to different risk appetites, investment goals, and time horizons.
Types of Mutual Funds based on asset class
Equity Funds - Equity funds primarily invests in stocks or equities issued by publicly traded companies.
Debt Funds - Debt funds primarily invests in fixed-income securities such as government bonds, corporate bonds, money market instruments, and other debt securities.
Hybrid Funds - Hybrid funds, also known as a balanced fund, combines investments in both stocks and fixed-income securities such as bonds within a single portfolio. In other words, it invests both in equity funds and debt funds.
| Equity Funds | Debt Funds | Hybrid Funds |
|---|---|---|
|
Large Cap |
Overnight Fund |
Aggressive Hybrid |
|
Mid Cap |
Liquid Fund |
Conservative Hybrid |
|
Large & Mid Cap |
Ultra Short Term |
Equity Savings |
|
Flexi Cap |
Low Duration Fund |
Multi Asset Allocation |
|
Small Cap |
Dynamic Bond Fund |
Fund of Funds (International) |
|
Thematic Cap |
Banking & PSU |
Index Funds (International) |
|
Equity Linked Saving Scheme |
Corporate Bond |
– |
|
Index Fund |
Gilt Fund |
– |