Mutual Funds
June 9, 2022 2022-08-08 11:35Mutual Funds
Schemes for every financial objective
Mutual Funds
Mutual funds are baskets of stocks or bonds. They come in all different shapes and sizes, from covering broad stock market indexes to focusing on specific sectors. Mutual fund system offers a low-cost option to the investors to invest in well-diversified and professionally managed portfolios that suit many investment objectives.
We make it easy for you to find a scheme or portfolio of schemes most suited to your needs and objectives. Indian Mutual Fund System has thousands of Schemes that are broadly classified in the following groups:
Equity Schemes
An Equity Fund is a mutual fund that mainly invests in equity stocks. It can be actively or passively managed fund. SEBI has listed the following categories of schemes under the Group “Equity Schemes:”
- Multi Cap Fund
- Large Cap Fund
- Large & Mid Cap fund
- Mid Cap Fund
- Small Cap Fund
- Dividend Yield Fund
- Value Fund
- Contra Fund
- Focused Fund
- Sectoral / Thematic Fund
- ELSS
- Flexi Cap Fund
As per SEBI’s directive, 1st to 100th Company in terms of full market capitalisation is called as a large cap stock. 101st to 250th company in terms of full market capitalisation is called as a mid cap stock. 251st company onwards in terms of full market capitalisation are small cap stocks.
Debt Schemes
Debt Funds predominantly invest in fixed income securities of different maturities. SEBI has listed the following categories of schemes under the Group “Debt Schemes:”
- Overnight Fund
- Liquid Fund
- Ultra Short Duration Fund
- Low Duration Fund
- Money Market Fund
- Short Duration Fund
- Medium Duration Fund
- Medium to Long Duration Fund
- Long Duration Fund
- Dynamic Bond Fund
- Corporate Bond Fund
- Credit Risk Fund
- Banking and PSU Fund
- Gilt Fund
- Gilt Fund with 10 years constant duration
- Floater Fund
Debt funds provide a well-diversified portfolio of fixed income schemes that meet the saving and investing needs of an individual or a household in a tax efficient manner.
Hybrid Schemes
A hybrid fund invests in different types of assets or asset classes to create a diversified portfolio. These funds predominantly invest in a mix of equity stocks and fixed income securities. Some hybrid schemes may also invest in multi assets such as equity stocks, fixed income securities, gold, silver and other commodities.
SEBI has listed the following categories of schemes under the Group “Hybrid Schemes:”
- Conservative Hybrid Fund
- Balanced Hybrid Fund
- Aggressive Hybrid Fund
- Dynamic Asset Allocation or Balanced Advantage
- Multi Asset Allocation
- Arbitrage Fund
- Equity Savings
Hybrid Funds offer the following advantages:
- Diversified portfolio by investing in multiple asset classes in a single scheme.
- Tax efficiency
- Commoditisation to financialization
“Mutual Fund Investments are subject to market risk. Please read all scheme-related documents and consult an AMFI registered Mutual Fund Distributor before investing”
Successful Investing takes time, discipline, and patience.
No matter how great the talent or effort, some things just take time
– Warren Buffet.
No matter how great the talent or effort, some things just take time
– Warren Buffet.
