Types of Mutual Funds in India

What is Mutual Fund?

Mutual funds pool money from multiple investors to invest in diverse securities regulated by SEBI in India.

Equity Funds

Invest in stocks for long-term capital appreciation, categorized as large-cap, mid-cap, small-cap, or multi-cap funds.

Debt Funds

Invest in fixed-income instruments like government securities and corporate bonds for stable income and capital preservation.

Balanced Funds

Invest in both equity and debt instruments to achieve a balance of capital appreciation and income generation.

Index Funds

Mirror-specific stock market indexes, providing diversification and low expense ratios.

Sector Funds

Focus on specific sectors like banking, pharma, or technology for potential industry growth.

Tax-saving Funds

Equity Linked Saving Schemes (ELSS) offering tax benefits under Section 80C, with a lock-in period of three years.

Liquid Funds

Invest in highly liquid instruments for low-risk, short-term investments.

International Funds

Invest in overseas markets for geographic diversification, with exposure to global stocks and bonds.

Assess investment goals, consult advisors, and understand risks before investing in mutual funds.