What are the types of Mutual Funds?

What are the types of Mutual Funds?

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In this post, we will talk about what are the types of mutual funds in India. Whenever you go to invest in a mutual fund, you are told about many types of mutual funds. So today we will tell you about this, what are the types of mutual funds? And what does that fund mean?

There are mainly three types of mutual funds

EQUITY MUTUAL FUND
DEBT MUTUAL FUND
HYBRID MUTUAL FUND

Today we will know about Equity Mutual Fund, Equity Mutual Fund are the Mutual Fund. Those who invest their money in equity and equity market.

There are also several types of equity mutual funds.

(a) LARGE CAP FUND

(b) MID CAP FUND

(c) SMALL CAP FUND

(d) THEMATIC FUND

(e) SECTOR FUND

(f) DIVIDEND YIELD SCHEMES

(g) DIVERSIFIED EQUITY FUND

(h) ELSS

Now we understand in detail what these funds mean

(a) LARGE CAP FUND – There are three types of companies in the stock market LARGE CAP (Large Cap), MID CAP (Mid Cap) SMALL CAP (Small Cap) The company whose market capitalization is less than 5000 thousand crores is small. The cap company is called. And the company whose market capitalization is between 5000 crores to 100,000 crores is called mid cap company. And the company whose market capitalization is more than 1,00000 crores is called large cap company. However, this is not a fix cateria to divide these companies. From time to time there are changes in their cateria. So the funds which invest in large cap companies are called large cap funds. The returns of large cap companies are slightly lower as this company has already reached the pinnacle of success. But due to being a big company, they have a lot of funds in bad times due to which the chances of spread are also very useful. Due to which you get less return on money but money is safe.

(b) MID CAP FUND – We fund mid-cap funds which fund mid-cap companies who invest their money.

(c) SMALL CAP FUND – Funds that invest their money in small cap companies tend to be small cap funds. Small Cap Fund Fund The company which invests its money is in its security phase, so there is a high probability of growth in them.

(d) THEMATIC FUND – Thematic funds invest in a theme such as India Rural Theme, E-Commerce Theme etc. HDFC HOUSING OPPORTUNITYIES FUND for example is a thematic fund which is housing it buys stock related to housing like Cement, construction, paint metal etc.

(e) SECTOR FUND – There are many sector companies in the stock market. The sector fund invests in a single sector company. Like sbi pharma mutual fund is a sector fund which invests only in companies in the farm sector. Reliance media and entertainment fund is a sector fund which invests only in companies in media and entertainment sector.

(f) DIVIDEND YIELD SCHEMES – The company pays part of its profit to its share holders as dividend or not to pay dividend. It is up to the company. Dividend EALF funds are invested in companies that offer regular dividends.

(g) DIVERSIFIED EQUITY FUND – This fund invests in companies of different market capitals from different sectors.

(h) ELSS- ELSS means equity linked saving scheme is a tax saving fund. By investing in this fund, you can get a rebate of up to Rs 1,50,000 under section 80C, but this fund has a locking period of 3 years, that is, you cannot withdraw money invested in it for 3 years.

We have come to know that you have come to know that what are the types of mutual funds. And what are the types of EQUITY MUTUAL FUND (Equity Mutual Fund). We will try to explain in detail about DEBT MUTUAL FUND (Debt Mutual Fund) and HYBRID MUTUAL FUND (Hybrid Mutual Fund) in our next post.

 

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