Different Types of Mutual Funds in India

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Different types of Mutual Funds in India
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Everybody wants to be rich with as little
investment possible!
Wonder how to convert a moderate investment into
a substantial sum over a period of time?
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Mutual Fund Investments can be a great way to
create wealth over a long term
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Key benefits of Mutual Funds

• Mutual funds can be used for your IRA and other
  retirement plans.
•  Mutual funds can be borrowed against in case of
  an emergency.
• Mutual funds involve no personal liability beyond
  the investment risk in the portfolio.
• Mutual funds gives you tax benefits

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Different types of Mutual Funds
Equity / Growth Funds Equity funds are those that
invest in stocks and are also called stock funds.
Its investment objective is long term capital
growth. These funds invest minimum 65 of its
corpus in equity and equity related securities. 
Specific equity funds may focus on a certain
sector of the market or may be geared toward a
certain level of risk.These types of funds are
suitable for investors who look for higher
return, but at the same time are ready to take
risk. Debt Funds Debt Funds are mutual funds
that invest in fixed income securities like bonds
and bills. Gilt fund, monthly income plans
(MIPs), short term plans (STPs), liquid funds,
and fixed maturity plans (FMPs) are some of the
investment options in debt funds. Apart from
these categories, debt funds include various
funds investing in short term, medium term and
long term bonds.
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Different types of Mutual Funds
Balanced Funds These funds invest both in
equities and fixed income instruments and its
investment objective is to provide a balanced
mixture of safety, income and capital
appreciation. The amounts that such a
mutual fund invests into each asset class usually
must remain within a set minimum and
maximum. Index Fund This type of mutual fund
will replicate the portfolio of a specific market
index such as BSE Sensex or the SP CNX Nifty.
An index mutual fund is said to provide broad
market exposure, low operating expenses and low
portfolio turnover. Gilt Funds Gilt Funds
exclusively invest only in government bonds.
These funds dont carry credit risk , however,
they carry interest rate risks.
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Different types of Mutual Funds
Liquid Funds These funds invest in the money
market instruments such as treasury bills and
commercial papers for a period of less than 90
days. This short term fund is suitable for
investors looking for moderate returns on their
surplus funds. Global Funds As the name
suggests, it is compulsory to invest the major
part of their corpus in overseas market. They
have a lot of political risks attached with the
country you have invested in. These funds provide
more global opportunities for diversification and
act as a hedge against inflation and currency
risks. Funds of Funds It is an investment
strategy of holding portfolio of other investment
funds instead of investing in stocks or bonds.
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And this sums it up well !
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Thank You