Types of Mutual Funds in India

Types of Mutual Funds in India

Types of Mutual Funds in India

1. Equity Funds 

2. Debt Funds

3. Balanced funds 

4. Money Market Mutual Funds

5. Gilt Funds

1. Equity Funds

Equity funds invest most of the money that they gather from investors into equity shares. These are high risk schemes and investors can also make losses, since most of the money is parked into shares. These types of schemes are suitable for investors with an appetite for risk.

Debt Funds

Debt funds invest most of their money into debt schemes including corporate debt, debt issued by banks, gilts and government securities. These types of funds are suitable for investors who are not willing to take risks. Returns are almost assured in these types of schemes.

Balanced funds

invest their money in equity as well as debt. They generally tend to skew the money more into equity then debt. The objective in the end is again to earn superior returns. Of course, they might alter their investment pattern based on market conditions.

Money Market Mutual Funds

Money market mutual funds are also called Liquid funds. They invest a bulk of their money in safer short-term instruments like Certificates of Deposit, Treasury and Commercial Paper. Most of the investment is for a smaller duration.

Glit Funds

Gilt Funds are perhaps the most secure instruments that are around. They invest bulk of their money in government securities. Since they have backing of the government they are considered the safest mutual fund units around

-tamil.goodreturns

Stocks and Share Analyst

MR.K.P.PRABHAGHARAN,

KKP CAPITAL, 9894333189

Mutual Fund Advisor