Different Types of Mutual Funds in India
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Mutual funds have recently gained significant popularity as an effective investment option. They play a crucial role in the financial market by valuing tradable assets such as stocks and bonds. These funds pool resources from numerous investors to invest in a diversified portfolio of assets managed by professionals.Updated On – 08 Jan 2025
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After deducting applicable expenses, any increase in the investment’s value is distributed to investors based on the number of units they hold. This allows investors to benefit from the fund’s growth.
Choosing the right type of mutual fund depends on your specific investment goals, risk tolerance, and time horizon. This alignment is essential to maximize returns and achieve your financial objectives. Read on to know details about the types of mutual funds in India.
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Types of Mutual Funds in India
The most popular types of mutual funds in India are listed below:
There are several other types of funds offered by the asset management companies in the country. We have segregated the same based on structure, asset class, investment objective, specialty, and risk, in the sections below.
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Types of Mutual Funds based on Structure
Mutual funds are classified based on their structural characteristics into the following types:
- Open-Ended Funds:
- These funds do not limit the timing or number of units that can be purchased. Investors can buy or redeem units at any time throughout the year at the current Net Asset Value (NAV). This flexibility makes open-ended funds ideal for those seeking liquidity, as they are not bound by specific maturity dates.
- Closed-Ended Funds:
- Closed-ended funds have a fixed number of units and can only be purchased during a specified initial offer period. Redemption is only possible at a pre-determined maturity date. To enhance liquidity, these funds are often listed and traded on stock exchanges, allowing investors to sell their units in the secondary market.
- Interval Funds:
- Interval funds offer a blend of features from both open-ended and closed-ended funds. They allow transactions—both purchases and redemptions—only at specific intervals throughout the fund’s tenure. During these designated periods, investors can buy or sell their units, providing periodic liquidity while retaining some characteristics of closed-ended funds.
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The table below outlines the characteristics of these funds:
| Characteristics | Open-Ended Funds | Closed-Ended Funds | Interval Funds |
| Liquidity | High liquidity; units can be bought or redeemed anytime at NAV. | Limited liquidity; units can be traded on stock exchanges. | Periodic liquidity; units can be bought or redeemed only during specified intervals. |
| Transaction Timing | Can buy or redeem units at any time. | Units can only be purchased during the initial offer period; redemption at maturity. | Can buy or redeem units only during designated intervals. |
| Investment Period | No fixed investment period. | Fixed tenure | Fixed investment period with periodic liquidity windows. |
| Pricing | Transactions at current Net Asset Value (NAV). | Units are traded at market prices on stock exchanges. | Transactions occur at intervals, with prices reflecting the NAV at those times. |
| Management Style | Can be actively or passively managed. | Typically, actively managed during the initial offer period. | Often managed with features of both active and passive styles. |
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Types of Mutual Funds based on Asset Class
Here is the list of different types of mutual funds based on asset classes:
- Equity Funds:
- Equity funds invest in company shares, with returns linked to stock market performance. While they can offer high returns, they also carry higher risk. Categories include Large-Cap, Mid-Cap, Small-Cap, Focused Funds, and ELSS. Ideal for long-term investors with a high-risk tolerance.
- Debt Funds:
- Debt funds invest in fixed-income securities like corporate bonds and government securities. They offer stability and regular income with lower risk. Types include low-duration, liquid, overnight, credit risk, and gilt funds, based on their investment duration.
- Hybrid Funds:
- Hybrid funds mix debt and equity investments to balance risk and return. Allocation ratios can be fixed or flexible. Types include balanced funds, aggressive funds, and multi-asset allocation funds, which invest in three or more asset classes.
- Solution-Oriented Funds:
- These funds target specific financial goals, such as education, marriage, or retirement, and typically have a lock-in period of five years to support long-term savings.
- Other Funds:
- This category encompasses index funds, which track specific stock indices, and fund of funds, which invest in other mutual funds.
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Types of Mutual Funds based on Investment Objective
Here is the list of mutual funds that caters to diverse investment goals of the customers:
- Growth Funds:
- Growth funds invest primarily in high-growth stocks with the objective of capital appreciation over the long term. They focus on companies expected to grow earnings at an above-average rate compared to their industry or the overall market. Ideal for investors who are looking for substantial returns over an extended period and can tolerate higher volatility and risk.
- Tax-Saving Funds (ELSS):
- Equity-Linked Savings Schemes (ELSS) primarily invest in equities and offer tax benefits under Section 80C of the Income Tax Act. They come with a three-year mandatory lock-in period, shorter than other tax-saving instruments. ELSS funds are suitable for investors looking to save on taxes while potentially benefiting from equity market returns.
- Liquidity-Based Funds:
- These funds are categorized based on their liquidity. Ultra-Short-Term Funds and Liquid Funds are tailored for short-term investments, providing easy access to capital with minimal risk and relatively low returns. Money Market Funds, which are also included in this category, invest in short-term, high-quality instruments. In contrast, Retirement Funds and Long-Term Fixed Income Funds are designed for those with long-term financial goals, typically featuring longer lock-in periods to match the extended investment horizon.
- Capital Protection Funds:
- Capital protection funds aim to preserve the invested capital by allocating a portion of the portfolio to fixed-income securities while investing the remainder in equities. This strategy helps in minimizing potential losses while aiming for some level of return. Returns are subject to tax, and the level of protection can vary based on the fund’s allocation.
- Fixed-Maturity Funds (FMF):
- FMFs invest in fixed-income securities that align with the fund’s maturity period. For example, a three-year FMF will invest in debt instruments maturing in three years or less. These funds offer predictable returns and are typically used for achieving specific financial goals by matching the investment horizon with the maturity of the underlying securities.
- Pension Funds:
- Pension funds are designed to provide a steady income during retirement. They often have a long investment horizon and may invest in a mix of equities, bonds, and other assets. Pension funds are generally hybrid in nature, balancing between growth and income to ensure that investors receive consistent returns over time. They are suitable for individuals planning for retirement and seeking a disciplined approach to long-term savings.
Types of Mutual Funds based on Specialty
The following are the types of mutual funds based on specialty:
| Type of Mutual Fund | Investment Focus | Characteristics |
| Sector Funds | Invest in a specific sector, such as infrastructure, technology, or healthcare. | Returns and risk are tied to the performance of the chosen sector. |
| Index Funds | Replicate the performance of a particular index by investing in the same securities. | Mirrors the index’s movement and returns, providing broad market exposure. |
| Fund of Funds | Invest in other mutual funds, potentially both domestic and international. | Diversification across multiple funds, reducing risk from any one fund’s performance. |
| Emerging Market Funds | Invest in companies located in developing countries with growth potential. | Higher risks due to political and economic instability but potential for significant returns. |
| International Funds | Invest in companies outside the investor’s home country. | Diversified international exposure, excluding the investor’s domestic market. |
| Global Funds | Invest in companies worldwide, including the investor’s own country. | Broader global diversification, including the home market. |
| Real Estate Funds | Invest in companies operating in the real estate sector, such as developers, property managers, and lenders. | Exposure to real estate markets; can invest in various stages of property development. |
| Commodity Focused Stock Funds | Invest in companies involved in commodity production, such as mining or agriculture. | Indirect exposure to commodities markets; performance linked to commodity prices. |
| Market Neutral Funds | Aim to provide stable returns by investing in securities like treasury bills and ETFs without direct market exposure. | Target steady growth, focusing on minimizing market risk. |
| Inverse/Leveraged Funds | Generate returns by betting against market trends, using derivatives and other strategies. | High risk and potential for large losses or gains, suited for experienced investors only. |
| Asset Allocation Funds | Adjust asset allocation between equities, bonds, and other securities based on the fund’s strategy. | Can be target date (adjusts allocation as a target date approaches) or target allocation (maintains a set allocation). |
| Gilt Funds | Invest in government securities with long-term focus. | Virtually risk-free due to government backing, ideal for risk-averse investors. |
| Exchange Traded Funds (ETFs) | Trade on stock exchanges like shares, replicating the performance of an index or a commodity. | Provide liquidity and low costs due to passive management, combining features of open and close-ended funds. |
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Different Types of Mutual Funds in India
Mutual funds have recently gained significant popularity as an effective investment option. They play a crucial role in the financial market by valuing tradable assets such as stocks and bonds. These funds pool resources from numerous investors to invest in a diversified portfolio of assets managed by professionals.Updated On – 08 Jan 2025Check Your Credit Score for FREE
After deducting applicable expenses, any increase in the investment’s value is distributed to investors based on the number of units they hold. This allows investors to benefit from the fund’s growth.
Choosing the right type of mutual fund depends on your specific investment goals, risk tolerance, and time horizon. This alignment is essential to maximize returns and achieve your financial objectives. Read on to know details about the types of mutual funds in India.Check Your Credit Score for FREE
Types of Mutual Funds in India
The most popular types of mutual funds in India are listed below:
There are several other types of funds offered by the asset management companies in the country. We have segregated the same based on structure, asset class, investment objective, specialty, and risk, in the sections below.Check Your Credit Score for FREE
Types of Mutual Funds based on Structure
Mutual funds are classified based on their structural characteristics into the following types:
- Open-Ended Funds:
- These funds do not limit the timing or number of units that can be purchased. Investors can buy or redeem units at any time throughout the year at the current Net Asset Value (NAV). This flexibility makes open-ended funds ideal for those seeking liquidity, as they are not bound by specific maturity dates.
- Closed-Ended Funds:
- Closed-ended funds have a fixed number of units and can only be purchased during a specified initial offer period. Redemption is only possible at a pre-determined maturity date. To enhance liquidity, these funds are often listed and traded on stock exchanges, allowing investors to sell their units in the secondary market.
- Interval Funds:
- Interval funds offer a blend of features from both open-ended and closed-ended funds. They allow transactions—both purchases and redemptions—only at specific intervals throughout the fund’s tenure. During these designated periods, investors can buy or sell their units, providing periodic liquidity while retaining some characteristics of closed-ended funds.
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The table below outlines the characteristics of these funds:
| Characteristics | Open-Ended Funds | Closed-Ended Funds | Interval Funds |
| Liquidity | High liquidity; units can be bought or redeemed anytime at NAV. | Limited liquidity; units can be traded on stock exchanges. | Periodic liquidity; units can be bought or redeemed only during specified intervals. |
| Transaction Timing | Can buy or redeem units at any time. | Units can only be purchased during the initial offer period; redemption at maturity. | Can buy or redeem units only during designated intervals. |
| Investment Period | No fixed investment period. | Fixed tenure | Fixed investment period with periodic liquidity windows. |
| Pricing | Transactions at current Net Asset Value (NAV). | Units are traded at market prices on stock exchanges. | Transactions occur at intervals, with prices reflecting the NAV at those times. |
| Management Style | Can be actively or passively managed. | Typically, actively managed during the initial offer period. | Often managed with features of both active and passive styles. |
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Types of Mutual Funds based on Asset Class
Here is the list of different types of mutual funds based on asset classes:
- Equity Funds:
- Equity funds invest in company shares, with returns linked to stock market performance. While they can offer high returns, they also carry higher risk. Categories include Large-Cap, Mid-Cap, Small-Cap, Focused Funds, and ELSS. Ideal for long-term investors with a high-risk tolerance.
- Debt Funds:
- Debt funds invest in fixed-income securities like corporate bonds and government securities. They offer stability and regular income with lower risk. Types include low-duration, liquid, overnight, credit risk, and gilt funds, based on their investment duration.
- Hybrid Funds:
- Hybrid funds mix debt and equity investments to balance risk and return. Allocation ratios can be fixed or flexible. Types include balanced funds, aggressive funds, and multi-asset allocation funds, which invest in three or more asset classes.
- Solution-Oriented Funds:
- These funds target specific financial goals, such as education, marriage, or retirement, and typically have a lock-in period of five years to support long-term savings.
- Other Funds:
- This category encompasses index funds, which track specific stock indices, and fund of funds, which invest in other mutual funds.
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Types of Mutual Funds based on Investment Objective
Here is the list of mutual funds that caters to diverse investment goals of the customers:
- Growth Funds:
- Growth funds invest primarily in high-growth stocks with the objective of capital appreciation over the long term. They focus on companies expected to grow earnings at an above-average rate compared to their industry or the overall market. Ideal for investors who are looking for substantial returns over an extended period and can tolerate higher volatility and risk.
- Tax-Saving Funds (ELSS):
- Equity-Linked Savings Schemes (ELSS) primarily invest in equities and offer tax benefits under Section 80C of the Income Tax Act. They come with a three-year mandatory lock-in period, shorter than other tax-saving instruments. ELSS funds are suitable for investors looking to save on taxes while potentially benefiting from equity market returns.
- Liquidity-Based Funds:
- These funds are categorized based on their liquidity. Ultra-Short-Term Funds and Liquid Funds are tailored for short-term investments, providing easy access to capital with minimal risk and relatively low returns. Money Market Funds, which are also included in this category, invest in short-term, high-quality instruments. In contrast, Retirement Funds and Long-Term Fixed Income Funds are designed for those with long-term financial goals, typically featuring longer lock-in periods to match the extended investment horizon.
- Capital Protection Funds:
- Capital protection funds aim to preserve the invested capital by allocating a portion of the portfolio to fixed-income securities while investing the remainder in equities. This strategy helps in minimizing potential losses while aiming for some level of return. Returns are subject to tax, and the level of protection can vary based on the fund’s allocation.
- Fixed-Maturity Funds (FMF):
- FMFs invest in fixed-income securities that align with the fund’s maturity period. For example, a three-year FMF will invest in debt instruments maturing in three years or less. These funds offer predictable returns and are typically used for achieving specific financial goals by matching the investment horizon with the maturity of the underlying securities.
- Pension Funds:
- Pension funds are designed to provide a steady income during retirement. They often have a long investment horizon and may invest in a mix of equities, bonds, and other assets. Pension funds are generally hybrid in nature, balancing between growth and income to ensure that investors receive consistent returns over time. They are suitable for individuals planning for retirement and seeking a disciplined approach to long-term savings.
Types of Mutual Funds based on Specialty
The following are the types of mutual funds based on specialty:
| Type of Mutual Fund | Investment Focus | Characteristics |
| Sector Funds | Invest in a specific sector, such as infrastructure, technology, or healthcare. | Returns and risk are tied to the performance of the chosen sector. |
| Index Funds | Replicate the performance of a particular index by investing in the same securities. | Mirrors the index’s movement and returns, providing broad market exposure. |
| Fund of Funds | Invest in other mutual funds, potentially both domestic and international. | Diversification across multiple funds, reducing risk from any one fund’s performance. |
| Emerging Market Funds | Invest in companies located in developing countries with growth potential. | Higher risks due to political and economic instability but potential for significant returns. |
| International Funds | Invest in companies outside the investor’s home country. | Diversified international exposure, excluding the investor’s domestic market. |
| Global Funds | Invest in companies worldwide, including the investor’s own country. | Broader global diversification, including the home market. |
| Real Estate Funds | Invest in companies operating in the real estate sector, such as developers, property managers, and lenders. | Exposure to real estate markets; can invest in various stages of property development. |
| Commodity Focused Stock Funds | Invest in companies involved in commodity production, such as mining or agriculture. | Indirect exposure to commodities markets; performance linked to commodity prices. |
| Market Neutral Funds | Aim to provide stable returns by investing in securities like treasury bills and ETFs without direct market exposure. | Target steady growth, focusing on minimizing market risk. |
| Inverse/Leveraged Funds | Generate returns by betting against market trends, using derivatives and other strategies. | High risk and potential for large losses or gains, suited for experienced investors only. |
| Asset Allocation Funds | Adjust asset allocation between equities, bonds, and other securities based on the fund’s strategy. | Can be target date (adjusts allocation as a target date approaches) or target allocation (maintains a set allocation). |
| Gilt Funds | Invest in government securities with long-term focus. | Virtually risk-free due to government backing, ideal for risk-averse investors. |
| Exchange Traded Funds (ETFs) | Trade on stock exchanges like shares, replicating the performance of an index or a commodity. | Provide liquidity and low costs due to passive management, combining features of open and close-ended funds. |
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Types of Mutual Funds based on Risk
Here is the list of types of mutual funds that you can invest in depending on your risk appetite:
- Low-Risk Funds:
- Ideal for investors seeking minimal risk, these funds invest mainly in debt instruments like government securities. They offer stability with lower returns and are generally suited for long-term investment. Gilt funds are a typical example, focusing on high-quality government bonds.
- Very-Low-Risk Funds:
- Perfect for short-term goals, very-low-risk funds include liquid funds and ultra-short-term funds. They are highly liquid with minimal market exposure, suitable for investment periods of one month to one year. They offer safety from market volatility but provide lower returns.
- Medium-Risk Funds:
- These funds are designed for investors who can tolerate moderate risk for potentially higher returns. They often invest in a mix of equities and debt instruments, balancing risk and reward. Medium-risk funds, such as hybrid funds, are suitable for long-term wealth accumulation.
- High-Risk Funds:
- Aimed at investors willing to take significant risks for the potential of high returns, high-risk funds include inverse mutual funds and those with heavy equity exposure. They can offer substantial gains but come with increased volatility and potential for large losses.
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Related Articles on Mutual Funds
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Various types of Funds Under Different Types of Schemes Based on Principal Investment
The following are the different categories of funds under each scheme based on principal investment:
Equity Scheme
The following are the different types of equity schemes:
| Fund Category | Investment Strategy | Minimum Equity Allocation |
| Multi Cap Fund | Invests across large, mid, and small-cap stocks | At least 75% |
| Flexi Cap Fund | Flexible investment across market capitalisations. | At least 65% |
| Large Cap Fund | Focuses on large-cap stocks (top 100 companies by market cap). | At least 80% |
| Large & Mid Cap Fund | Balanced investment in large-cap and mid-cap stocks. | At least 35% in each |
| Mid Cap Fund | Invests predominantly in mid-cap stocks (companies ranked 101st-250th). | At least 65% |
| Small Cap Fund | Focuses on small-cap stocks (companies ranked below 250th). | At least 65% |
| Dividend Yield Fund | Investing in high dividend-yielding stocks. | At least 65% |
| Value Fund | Follows a value investment strategy, targeting undervalued stocks. | At least 65% |
| Contra Fund | Contrarian investment approach, investing in out-of-favour stocks with potential growth. | At least 65% |
| Focused Fund | Concentrates investments in a maximum of 30 stocks. | At least 65% |
| Sectoral/Thematic Fund | Focuses on specific sectors or themes, e.g., technology, healthcare. | At least 80% |
| Equity Linked Savings Scheme (ELSS) | Provides tax benefits under Section 80C, with a three-year lock-in period. | At least 80% |
Hybrid Scheme
The following are the funds under hybrid scheme:
| Types of funds | Minimum investment | Investment area |
| Conservative Hybrid Funds | Equity instruments: Between 10% and 25% of total assetsDebt instruments: Between 75% and 90% of total assets | Debt instruments |
| Balanced Hybrid Funds* | Equity and Equity related instruments: Between 40% and 60% of total assetsDebt instruments: Between 40% and 60% of total assets | Equity and debt instruments |
| Aggressive Hybrid Funds | Equity and Equity related instruments: Between 65% and 80% of total assetsDebt instruments: Between 20% – 35% of total assets | Equity and equity related instruments |
| Dynamic Asset Allocation Funds or Balanced Advantage | Dynamically managed debt or equity funds | Based on market conditions, funds that changes their equity exposure |
| Multi-Asset Allocation Funds | At least 10% each in all three asset classes | Investment in three different assets |
| Arbitrage Funds | 65% of total assets | Investment in arbitrage opportunities |
| Equity Savings | Equity & equity related instruments: 65% of total assets Debt: 10% of total assets | Equity, arbitrage, and debt fund |
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Debt scheme:
The following are the funds under debt scheme:
| Types of funds | Investment in | Maturity |
| Overnight Funds | Overnight securities | One day |
| Liquid Funds | Debt and money market securities | Up to 91 days |
| Ultra Short Duration Funds | Debt and Money Market instruments such that the Macaulay | Three to six months |
| Low Duration Funds | Debt & Money Market instruments such that the Macaulay | Six to 12 months |
| Money Market Funds | Money Market instruments | Up to one year |
| Short Duration Fund | Debt & Money Market instruments such that the Macaulay | Between one year to three years |
| Medium Duration Funds | Debt & Money Market instruments such that the Macaulay | Between three years to four years |
| Medium to Long Duration Fund | Debt & Money Market instruments such that the Macaulay | Between four years to seven years |
| Long Duration Fund | Debt & Money Market instruments such that the Macaulay | More than seven years |
| Dynamic Bond Funds | Investment across any duration | Any duration |
| Corporate Bond Funds | 80% of total assets | In high rates corporate bonds only |
| Credit Risk Funds | 65% of total assets | In highest rated corporate bonds |
| Banking and PSU Fund | 80% of total assets | Invested in Public Sector Undertakings, Debt instruments of banks, Public Financial Institutions |
| Gilt Fund | 80% of total assets | Invested in Government securities for a duration of ten years |
| Gilt Fund with 10-year constant duration | 80% of total assets such that the Macaulay duration | Invested in Government securities for a duration of ten years |
| Floater Fund | 65% of total assets | Investment in floating rate instruments |
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Solution oriented scheme
The following are the funds under solution oriented scheme:
| Fund Category | Investment Strategy and Key Features | Special Conditions |
| Retirement Fund | Designed for retirement planning with investments in a mix of asset classes. | Lock-in period of at least 5 years or until the retirement age, whichever is earlier. |
| Children’s Fund | Aims to accumulate wealth for a child’s future needs, such as education. | Lock-in period of at least 5 years or until the child attains the age of majority, whichever is earlier. |
| Index Funds/ ETFs | Tracks a specific index, investing predominantly in the securities of that index. | A minimum of 95% investment in securities constituting the chosen index. |
| Fund of Funds (Overseas/Domestic) | Invests in other mutual funds, either domestic or overseas. | Minimum 95% investment in the underlying fund(s). |
Other schemes:
The following are the funds under other scheme:
| Types of funds | Minimum investment | Scheme details |
| Index Funds/ ETFs (Exchange Traded Funds) | 95% of total assets | Tracking or replicating any index |
| FoF’s (Overseas/Domestic) | 95% of total assets | Invests in other mutual funds |
Facts About Tax Saving Mutual Funds
The following are the significant facts about tax saving mutual funds taxation on mutual funds:
- Some mutual fund types are exempt of taxes
- No dividend distribution tax is applicable on Equity Funds
- Mutual funds are not classified as wealth when calculating wealth tax
- Long term gains are taxed at a lower rate than short term gains
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Classification of Mutual Fund Schemes as per Portfolio Management
| Aspect | Active Fund | Passive Fund |
| Management Style | Actively managed by professional fund managers who make buy/sell decisions. | Managed passively by tracking a specific market index. |
| Investment Strategy | Fund managers conduct research and analyse market trends to select securities. | Follows a predefined set of rules to replicate the holdings of an index. |
| Objective | Aims to outperform a specific benchmark or achieve higher returns than the market. | Aims to mirror the performance of a specific market index. |
| Cost Structure | Typically has higher management fees due to active management and research efforts. | Generally, has lower management fees due to minimal active management. |
| Performance Dependence | Depends on the skill of the fund manager and their ability to select outperforming securities. | Performance aligns closely with the index it tracks. |
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GST rate of 18% applicable for all financial services effective July 1, 2017.
FAQs on Types of Mutual Funds
- What are the 4 main types of mutual funds?Generally, mutual funds fall into one of four types: Equity Funds, Debt Funds, Money Market Funds, and Hybrid funds.
- Can I sell my stocks back to the mutual fund if it is a close-ended scheme?No, you cannot sell your units or stocks back to a close-ended mutual fund after a purchase has already been made. However, you can choose to sell the units based on their ongoing prices through the stock market.
- What are interval funds?These types of funds carry the characteristics of both close-ended and open-ended schemes. Such plans are usually selected when you want to repurchase units of the shares at various intervals during the entire investment period.
- If I want to make a safe investment in mutual funds and want fixed returns, which type of scheme should I invest in?For an investor looking for fixed returns when making a safe investment in mutual funds, the best option is to invest in a debt fund.
- If I am looking for regular income after my retirement, which mutual fund will be best suited for me?If you want regular returns around the time of your retirement by investing in a long-term mutual fund, then the pension funds might be the right option for you. However, it is better if you consult a financial advisor before making an investment.
- Which mutual fund invests in other mutual fund schemes?The fund of funds schemes usually invests in other mutual fund schemes to help investors achieve their investment goals.
- Which mutual funds offer tax benefits along with high returns?If your primary investment goal is to receive tax benefits, then the best option for you is to invest in Tax-Saving Funds or ELSS. Such types of schemes predominantly invest in equity shares while the returns of this plan offers tax benefits to the unitholders under the Income Tax Act, 1961.
- I want to invest in a mutual fund that will offer protection to my invested amount. Which mutual fund scheme should I choose?Capital Protection Funds are the best bet for individuals who want to ensure protection of their principal invested amount. Under such schemes, the funds are split between investment in equity markets and fixed income instruments.
- Is there any type of mutual fund that will allow me to earn a profit when the market is down?If you want to generate earnings when the markets fall, you can opt for an Inverse or Leveraged Fund.
- Based on the risk factor, what are the types of mutual funds available in the market?Depending on the level of risk associated, there are 3 types of mutual funds available in the markets: High risk, Medium risk and Low risk.
- What are commodity focused stock funds?Commodity focused stock funds are mutual fund schemes that primarily invest in the stocks of companies which operate in the commodities market such as manufacturers of commodities and mining companies.
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