Mutual Fund & MF Types

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

  • Index Fund

  • Bluechip Fund/ Large Cap fund

  • Mid cap/small cap fund

2) Debt Fund :

  • Income Fund

  • Fixed Maturity Fund

  • Gilt Fund

  • Liquid Fund

3) Balanced Fund

4) Hybrid Fund

5) Arbitrage Fund

6) Others



#Equity Mutual Funds -

  1. Equity diversified - Invests in different equity stocks.

  2. Sectorial Fund - sector fund i.e. infra fund power fund, Tiger fund.

  3. 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

  4. Index Fund - Invests in index stocks i.e. either 50 stocks of nifty or 30 stocks of Sensex replicate the market

  5. Blue chip Fund - It invests only in companies which have huge market capitalization

  6. 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.

  1. 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

  2. Fixed Maturity Fund - It is generally a close ended fund issued for short term investors in debt with a return higher than.....

  3. Gilt fund - Close ended long-term investment fund invests in Govt. Securities.

  4. 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.

Hybrid Fund - Objective of making money (Profit) from arbitrage makes hybrid fund. It's combination of debt, equity, #currency, #commodity and other assets.

Other Funds :

  1. #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

  2. Quant Fund - These are mutual fund schemes which invests in equity shares using quantitative methods, high frequency algorithm etc

  3. Fund of Fund - A fund of fund invests in other mutual funds schemes which has established track records instead of creating duplicate resource.

Thank You ...



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