Updated: Sep 16, 2020
#MutualFund is a collection of number of investors’ money managed by one entity via a trust setup by MF company. It is a section 25 Company according to Companies act.
A Mutual Fund trust can setup multiple schemes through which money can be raised from either Equity Market or Debt Market.
Types of Mutual Funds Investment
1) Equity Fund :
Equity diversified fund
Sectorial and thematic fund
#ELSS Tax Saver Fund
Bluechip Fund/ Large Cap fund
Mid cap/small cap fund
2) Debt Fund :
Fixed Maturity Fund
3) Balanced Fund
4) Hybrid Fund
5) Arbitrage Fund
#Equity Mutual Funds -
Equity diversified - Invests in different equity stocks.
Sectorial Fund - sector fund i.e. infra fund power fund, Tiger fund.
ELSS - Invests in equity stock but with a lock in period of 3 years as they get tax benefit e.g. #HDFC tax saver fund
Index Fund - Invests in index stocks i.e. either 50 stocks of nifty or 30 stocks of Sensex replicate the market
Blue chip Fund - It invests only in companies which have huge market capitalization
Mid cap/small cap Fund - It invests in companies which are in mid cap/small cap in nature with less than Rs. 5000 crores of market cap.
#Debt Fund - They a redesigned to ensure there is no capital gain or TDS charged.
Income Fund - It is designed to invest in Fixed income securities to give an investor regular income in form of monthly, quarterly, semi-annually, or yearly income plans
Fixed Maturity Fund - It is generally a close ended fund issued for short term investors in debt with a return higher than.....
Gilt fund - Close ended long-term investment fund invests in Govt. Securities.
Liquid Fund - Open-ended short-term fund invest in Commercial paper & bond market.
Balanced Fund - A balanced fund is a mutual fund that generally keeps to a 50-50 mix of stock and bond investments.
#Arbitrage Fund – This type of funds are shorter and looks for inefficiencies in market either equity, derivative or currency.
Other Funds :
#Gold Fund - This type of mutual fund scheme would invest in gold and issue the units against it. It is generally an ETF format fund. e.g. benchmark, gold, etc
Quant Fund - These are mutual fund schemes which invests in equity shares using quantitative methods, high frequency algorithm etc
Fund of Fund - A fund of fund invests in other mutual funds schemes which has established track records instead of creating duplicate resource.
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