Types of Mutual Fund Schemes in India


There are ‘n’ number of mutual fund schemes available in INDIA for investment,but you should check your goals & risk appetite that which type of mutual fund scheme you should invest into.

Mutual fund schemes can be categorized on the basis of their investment pattern, features, asset allocation& their market capitalization. Some of them are:-
  1. Equity funds: These funds invested into stock market. These carries higher risk as all the investment directed to stock market but gives higher returns due to variation in the price of NAV.
  2. Debt funds: These funds invest into debt or fixed income securities like Treasury Bills, government securities and money market instruments. Returns on these types of mutual funds are considered to be safer than equity funds.
  3. Balanced/Hybrid funds: These funds are the mixture of above two Equity fund & Debt fund. You can diversify your portfolio by investing into these funds.
  4. Liquid Funds: In these funds amount can be invested for short term period. In liquid funds, investment is made into Treasury Bills, call money instruments&in the instrument of maturity up to 91 days.
  5. Equity Linked Saving Schemes (ELSS): These funds are also called the Tax saver mutual funds. All the investments into ELSS funds are into Equity only. ELSS fund gives tax benefit undersec.80 C up to investment amount of 1.5lakhs.
  6. Index Funds: These funds are invested in such a way as its Benchmark index. Indexes can be Nifty 50, BSE SENSEX 30, and S&P 500 etc.These funds are passively managed mutual funds; no major role of Fund manager is involved into these as investment pattern will be same as the benchmark index.
  7. Sectorial Funds: These funds invest into a particular sector like Pharmaceuticals, IT, Banking etc.These funds generate returns as per the performance & growth in the particular sector, the money invested into.
Read More:- Managing Personal Finance in India

Comments

  1. SS31 January 2020 at 08:02

    Thanks for sharing this post :) Interesting post indeed. Now, people can get to know about what is mutual funds, their categorization & its benefits. Also, this post can help for those who are interested to invest in best mutual funds in India.

    ReplyDelete

Post a Comment

Popular posts from this blog

How mutual Funds Work

Image
Nowadays, mutual funds are becoming a preference among the investors because it is a type of investment vehicle that gives diversification, liquidity and professionally management. Are you looking for an investment vehicle that can help you avoid the risks associated with choosing individual assets? In this case, Mutual Funds should be your choice, as these are the investment vehicles that cater to the needs of the investor and provide diversification by investing into different assets classes. Mutual pools the money of the investors and invest in the portfolio of various assets classes. By investing your money along with the other investors, you will are able to invest in portfolios that you might not be able to afford on your own. The investors invest their money through Asset Management. Companies/Mutual Fund Companies, these companies handover the investment amount to the professionally qualified fund managers for the allocation of invested money into different asset cla
Read more

Direct Mutual Fund Calculator

Image
Direct Mutual fund Calculator (DMF Calculator) gives you the opportunity to calculate the appropriate amount that you can achieve by investing in mutual funds directly. Mutual fund Regulator SEBI (Securities & Exchange Board of India) is trying to motivate the Investors for Self investments in Mutual Fund market. So, SEBI introduced Direct Mutual fund Plan for MF investors. As there will be no intermediary in between the investor & the AMC, the intermediary commission will goes to the investor’s Account Directly. DMF Calculator assists you to compare the maturity value between regular plan & direct plan of a fund. While investing as a Smart Investor, one should know all the pros & cons of the way of the investment. Direct Mutual fund calculator enables you today to see the Difference of the maturity value of the regular plan & direct plan that you will get in future. By using DMF Calculator, You can calculate the additional maturity value that you can
Read more