Mutual Funds – All you need to know
Quick Questions, Key Terms, and Scheme Rankings
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NS Wealth Research
What Are the Different Types of Mutual Funds?
Mutual fund investment guide
Mutual funds are classified based on asset class and structure.
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- Equity Funds – Invest primarily in stocks for long-term capital appreciation. Suitable for investors with higher risk tolerance.
- Debt Funds – Invest in bonds and money market instruments. Suitable for conservative investors seeking stability.
- Hybrid Funds – Combine equity and debt for balanced risk and return.
Additional categories include:
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- ELSS (Equity Linked Savings Scheme) – Tax-saving under Section 80C
- Index Funds – Track a specific market index
- Sectoral/Thematic Funds – Focus on specific industries
- International Funds – Invest in global markets
- Liquid Funds – Short-term parking of surplus funds
Selecting the right category depends on financial goals, time horizon, and risk appetite.
Understanding fund types prevents misaligned investments and improves goal-based planning.
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New Fund Offer
Many investors mistakenly believe that a lower NAV during the NFO stage makes the fund cheaper. In reality, NAV alone does not determine the value of an investment. What truly matters is the investment strategy, the fund manager’s expertise, and the quality of the portfolio being created. ( READ MORE)