4 Main Types of Mutual Funds Schemes in India


There are several types of mutual funds available in the market. It’s like selecting a suitable mutual fund, which provides great value and greater return within a  less period of time. Each mutual fund type describes different types of the financial structure of securities and portfolios, which results in better value for investing money.

4 Main Types of Mutual Funds Schemes in India

Lets’s check out the 4 Common Types of Mutual Funds.

1) Money Market Funds

The money market funds are the ones that deliver stable and fixed types of return. People with a certain type of plan for their future requirements can go for these money market funds. Because it provides higher value along with a quick return. Investing in a money market mutual fund is like an investment, which is mostly associated with governmental agencies. Such as government bonds, national certificates, and fixed deposits.

2) Fixed Income Funds

In terms of security and finance, it would be advisable for people to invest in fixed-income funds. The fixed-income funds are similar to money market funds, but a major difference that creates a drastic change in these between them is that these fixed-income funds deal with government and private funds as well. Private funds are slightly riskier than government funds.

3) Equity Funds

Investment in equity funds requires overall knowledge about the stock market and securities. The equity fund investment can be risky, in terms of their nature of work. A professional mutual fund advisor with experience can influence an investor to make the right move. And that one small push over a mutual fund, can deliver a greater value of money for that particular investor. Equity fund activities deliver a fluctuating chart of the stock market, which is a definite subject for market risk.

4) Balanced Funds

The balanced funds deliver an equal rate of risk and return at the same time. In detail, it is one of the mutual funds which is a mixture of two different types of portfolios. The major highlight of balanced funding is that they depend more on stock market fluctuations along with a fixed rate of return at the same time. It’s like investing in a mutual fund that delivers services of fixed income and equity funds.

At the end bottom line is that all the above information about mutual funds, and the right ways of investing in one can definitely help people with investment queries. Therefore, it is advisable for all those investors who are thinking of investing in mutual funds is that, they should be well aware of the overall features and the structure of the mutual fund plans. Proper knowledge about mutual funds can deliver a proper amount of profit and experience in different types of mutual funds.

When undertaking any sort of financial investment of transactions, Indian residents are recommended to apply for a PAN card. You can find out what a PAN card is here.

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