• MUTUAL FUND
  • INDEX FUND
  • ETF
  • PMS
  • AIF
  • PARTNERS
  • INVESTOR EDUCATION
  • INTERNATIONAL BUSINESS
No Result
View All Result
  • Home
  • Blog
    Association of Mutual Funds in India: MF Association Role & Objectives

    Association of Mutual Funds in India: MF Association Role & Objectives

    What are Auto Sector funds? Are they a good investment option?

    What are Auto Sector funds? Are they a good investment option?

    Balanced Advantage Funds & How to invest in them

    Balanced Advantage Funds & How to invest in them

    How to Invest in Index Funds

    How to Invest in Index Funds

    How to Build an Investment Portfolio for Beginners

    How to Build an Investment Portfolio for Beginners

    SIP Funds to Invest In Future

    SIP Funds to Invest In Future

    Know How Much Salary To Save To Invest In Mutual Funds

    Know How Much Salary To Save To Invest In Mutual Funds

    Importance of Financial Planning

    Importance of Financial Planning

    A Complete Guide on ELSS Funds

    A Complete Guide on ELSS Funds

    Trending Tags

    • Videos
      Understanding the different Mutual Fund categorizations by Market Cap

      Understanding the different Mutual Fund categorizations by Market Cap

      Investing in Lumpsum or SIP

      Investing in Lumpsum or SIP

      Performance be a by-product

      Performance be a by-product

      What is Real Investing and why it requires grit and stubbornness?

      What is Real Investing and why it requires grit and stubbornness?

      5 Reason to Boost your SIP

      5 Reason to Boost your SIP

      Understanding the types of Mutual Funds

      Understanding the types of Mutual Funds

      Why SWP is wise decision than investing in Fixed Deposits?

      Why SWP is wise decision than investing in Fixed Deposits?

      Why you should diversify your portfolio?

      Why you should diversify your portfolio?

      What is NAV

      What is NAV

      Trending Tags

      • Mutual Fund Basics
      • Financial Goals
      • Asset Allocation
      • Basics of Investing
      • SIP
    • Podcast
      Ep. 13: Wisdom Tree (Part 2)

      Ep. 13: Wisdom Tree (Part 2)

      Ep. 12: Wisdom Tree (Part 1)

      Ep. 12: Wisdom Tree (Part 1)

      Ep. 11: The Investor’s Playbook

      Ep. 11: The Investor’s Playbook

      Ep. 10: Evolution of Indian FMCG Sector

      Ep. 10: Evolution of Indian FMCG Sector

      Ep. 09: Evolution of Indian Pharmaceutical Sector

      Ep. 09: Evolution of Indian Pharmaceutical Sector

      Ep. 08: Value Migration

      Ep. 08: Value Migration

      Ep. 07: Wealth Creation Studies

      Ep. 07: Wealth Creation Studies

      Ep. 06: Evolution of Indian Infrastructure & Capital Goods Sector

      Ep. 06: Evolution of Indian Infrastructure & Capital Goods Sector

      Ep. 05: Evolution of Indian Automobile Sector

      Ep. 05: Evolution of Indian Automobile Sector

      Trending Tags

      • Basics of Equity
    • 5 Keys of Investing
      5 Key points to keep in mind for budding investors

      5 Key points to keep in mind for budding investors

      5 Key ways to handle market volatility

      5 Key ways to handle market volatility

      5 Key New Year resolutions for investors

      5 Key New Year resolutions for investors

      5 Key situations and errors to be avoided by investors

      5 Key situations and errors to be avoided by investors

      5 Key investing lessons from the Mahabharata

      5 Key investing lessons from the Mahabharata

      5 Key investment lessons we could learn from Holi

      5 Key investment lessons we could learn from Holi

      5 Key reasons why ELSS could be preferred over other tax-saving options

      5 Key reasons why ELSS could be preferred over other tax-saving options

      5 Key benefits of investing via Mutual Funds over direct-equity investing

      5 Key benefits of investing via Mutual Funds over direct-equity investing

      5 Key mistakes investors should avoid while investing in ELSS

      5 Key mistakes investors should avoid while investing in ELSS

      Trending Tags

      • Basics of Investing
      • Basics of Equity
      • Financial Goals
      • Index Fund
      • Asset Allocation
      • SIP
      • Mutual Fund Basics
    • Wealth Creation Thoughts
    • Home
    • Blog
      Association of Mutual Funds in India: MF Association Role & Objectives

      Association of Mutual Funds in India: MF Association Role & Objectives

      What are Auto Sector funds? Are they a good investment option?

      What are Auto Sector funds? Are they a good investment option?

      Balanced Advantage Funds & How to invest in them

      Balanced Advantage Funds & How to invest in them

      How to Invest in Index Funds

      How to Invest in Index Funds

      How to Build an Investment Portfolio for Beginners

      How to Build an Investment Portfolio for Beginners

      SIP Funds to Invest In Future

      SIP Funds to Invest In Future

      Know How Much Salary To Save To Invest In Mutual Funds

      Know How Much Salary To Save To Invest In Mutual Funds

      Importance of Financial Planning

      Importance of Financial Planning

      A Complete Guide on ELSS Funds

      A Complete Guide on ELSS Funds

      Trending Tags

      • Videos
        Understanding the different Mutual Fund categorizations by Market Cap

        Understanding the different Mutual Fund categorizations by Market Cap

        Investing in Lumpsum or SIP

        Investing in Lumpsum or SIP

        Performance be a by-product

        Performance be a by-product

        What is Real Investing and why it requires grit and stubbornness?

        What is Real Investing and why it requires grit and stubbornness?

        5 Reason to Boost your SIP

        5 Reason to Boost your SIP

        Understanding the types of Mutual Funds

        Understanding the types of Mutual Funds

        Why SWP is wise decision than investing in Fixed Deposits?

        Why SWP is wise decision than investing in Fixed Deposits?

        Why you should diversify your portfolio?

        Why you should diversify your portfolio?

        What is NAV

        What is NAV

        Trending Tags

        • Mutual Fund Basics
        • Financial Goals
        • Asset Allocation
        • Basics of Investing
        • SIP
      • Podcast
        Ep. 13: Wisdom Tree (Part 2)

        Ep. 13: Wisdom Tree (Part 2)

        Ep. 12: Wisdom Tree (Part 1)

        Ep. 12: Wisdom Tree (Part 1)

        Ep. 11: The Investor’s Playbook

        Ep. 11: The Investor’s Playbook

        Ep. 10: Evolution of Indian FMCG Sector

        Ep. 10: Evolution of Indian FMCG Sector

        Ep. 09: Evolution of Indian Pharmaceutical Sector

        Ep. 09: Evolution of Indian Pharmaceutical Sector

        Ep. 08: Value Migration

        Ep. 08: Value Migration

        Ep. 07: Wealth Creation Studies

        Ep. 07: Wealth Creation Studies

        Ep. 06: Evolution of Indian Infrastructure & Capital Goods Sector

        Ep. 06: Evolution of Indian Infrastructure & Capital Goods Sector

        Ep. 05: Evolution of Indian Automobile Sector

        Ep. 05: Evolution of Indian Automobile Sector

        Trending Tags

        • Basics of Equity
      • 5 Keys of Investing
        5 Key points to keep in mind for budding investors

        5 Key points to keep in mind for budding investors

        5 Key ways to handle market volatility

        5 Key ways to handle market volatility

        5 Key New Year resolutions for investors

        5 Key New Year resolutions for investors

        5 Key situations and errors to be avoided by investors

        5 Key situations and errors to be avoided by investors

        5 Key investing lessons from the Mahabharata

        5 Key investing lessons from the Mahabharata

        5 Key investment lessons we could learn from Holi

        5 Key investment lessons we could learn from Holi

        5 Key reasons why ELSS could be preferred over other tax-saving options

        5 Key reasons why ELSS could be preferred over other tax-saving options

        5 Key benefits of investing via Mutual Funds over direct-equity investing

        5 Key benefits of investing via Mutual Funds over direct-equity investing

        5 Key mistakes investors should avoid while investing in ELSS

        5 Key mistakes investors should avoid while investing in ELSS

        Trending Tags

        • Basics of Investing
        • Basics of Equity
        • Financial Goals
        • Index Fund
        • Asset Allocation
        • SIP
        • Mutual Fund Basics
      • Wealth Creation Thoughts
      No Result
      View All Result
      No Result
      View All Result
      Home

      Understanding the types of Mutual Funds
      0 / 5 Rating 5 Count 1

      Your page rank:

      Other Experts by Other Experts
      April 4, 2022
      in Videos
      0
      3
      SHARES
      288
      VIEWS

      Are you thinking about investing in mutual funds? If so, it is critical to understand their different categories. Mutual funds are the most comprehensive, simple, and adaptable way to build a diversified investing portfolio. Securities and Exchange Board of India (or SEBI, in short) is Mutual Fund regulatory authority which provides guideline regarding classification of the mutual fund based on its objective, underlying assets, investment strategy etc.

      We broadly classify mutual fund schemes in to 5 categories. Let us now take a look at them.

      NO. 1: EQUITY SCHEMES – Equity or stock based Mutual funds are the most common type. This type of fund invests mostly in equities and equity related instruments. There are a number of subcategories within this area. Some equity funds are categorised based on the market cap of the companies in which they invest: example: Large Cap, Mid Cap or Small-cap, Large and Mid Cap and Multi Cap. Multi Cap funds invest across small, mid and large cap stocks but with an equal measure of 25%. Flexi-cap funds on the other hand, can invest in any stock irrespective of the company’s market cap without being constrained by a given proportion.
      Others are classified according to their investment strategy: aggressive growth, income-oriented, value, and so on. Equity Linked Saving Scheme (ELSS) invests in the Equity with a 3 year lock-in, and providing tax benefits under Sec 80C.
      The objective of an equity fund is generally to seek long-term capital appreciation

      NO. 2: DEBT SCHEMES – A debt fund (also known as income fund) is a fund that invests primarily in bonds or other debt securities. Debt funds invest in short and long-term securities issued by government, public financial institutions, companies
      – Treasury bills, Government Securities, Debentures, Commercial paper, Certificates of Deposit and others. Debt funds have potential for income generation and capital preservation. Debt funds can be categorized based on the tenor of the securities held in the portfolio and/or on the basis of the issuers of the securities or their fund management strategies

      NO. 3: HYBRID SCHEMES – These are the funds which invest in multiple schemes under different asset categories in a specific proportion. Let us look at the table below.

      • Conservative Hybrid Fund – Investment in equity & equity related instruments between 10% to 25% and in debt instruments between 75% to 90% of the total assets.
      • Balanced Hybrid Fund – Investment in equity & equity related instruments between 40% to 60% and rest of the assets in debt instruments.
      • Aggressive Hybrid Fund – Investment in equity & equity related instruments between 65% to 80% and in debt instruments between 20% to 35% of the total assets.
      • Dynamic Asset Allocation or Balanced Advantage Fund – Investment in equity and debt is managed dynamically.
      Other examples of Hybrid Fund are Multi Asset Allocation Fund, Arbitrage Fund, Equity Savings Fund.

      NO. 4: SOLUTION ORIENTED SCHEMES – Solution-oriented mutual funds promote investing for corpus preservation or capital appreciation to cover future expenses such as retirement, marriage, or kid’s education among others. These type of schemes have a lock-in period of 5 years or till objective of the fund is reached i.e. till retirement age is attained or till the child becomes a major etc.

      NO. 5: OTHERS SCHEMES – Index Funds, Exchange Traded Fund Scheme (i.e. ETFs) and Fund of Fund scheme (i.e. FOFs) are additional types of funds categorised under other schemes. An Index fund or an exchange traded fund are open ended schemes replicating or tracking a particular index. Here the minimum investment in securities of a particular index is 95% of the total assets.
      FOFs also follow similar guidelines but they operate in domestic and international markets as well. These schemes gives the investment a broader spectrum ultimately increasing diversification.

      Well, now you know the mutual fund categories. Please also know that the benchmark, returns, risk profile, tax treatment etc. change based on the category of the fund. Start investing in mutual funds and earn profits with the help of this guide. We hope you have learnt something new today, as it is our constant endeavour to educate and make an ‘investor’ a ‘sound investor’! Happy Investing!

      Leave a Reply Cancel reply

      Your email address will not be published. Required fields are marked *

      Stay Connected

      Recommended Videos

      Understanding the different Mutual Fund categorizations by Market Cap

      Understanding the different Mutual Fund categorizations by Market Cap

      by Other Experts
      December 27, 2022
      0

      As you know, Market capitalization for a company, which is most commonly referred to as market cap, is equal to...

      Investing in Lumpsum or SIP

      Investing in Lumpsum or SIP

      by Other Experts
      July 22, 2022
      0

      A question that keeps coming up in your mind as an Investor is – “Whether I should invest a lumpsum...

      Performance be a by-product

      Performance be a by-product

      by Other Experts
      November 28, 2022
      0

      Many investors mistakenly base the success of their portfolios on returns alone. Few investors consider the risk involved in achieving...

      Popular Posts

      • Ep. 13: Wisdom Tree (Part 2)

        Ep. 13: Wisdom Tree (Part 2)

        1351 shares
        Share 540 Tweet 338
      • Ep. 12: Wisdom Tree (Part 1)

        1322 shares
        Share 529 Tweet 331
      • Ep. 11: The Investor’s Playbook

        1298 shares
        Share 519 Tweet 325
      • Ep. 10: Evolution of Indian FMCG Sector

        1280 shares
        Share 512 Tweet 320
      • Ep. 09: Evolution of Indian Pharmaceutical Sector

        1174 shares
        Share 470 Tweet 294

      EquitySahiHai is an investor education initiative by Motilal Oswal Asset Management to educate and empower of yourself by through a series of videos that bring to you insights from stock market & mutual fund experts.

      Follow Us

      Browse by Category

      • 5 Keys of Investing
      • Asset Allocation
      • Basics of Equity
      • Basics of Investing
      • Blog
      • Financial Goals
      • Index Fund
      • International Investing
      • Investing Behaviour
      • Mutual Fund Basics
      • Podcast
      • SIP
      • STP
      • SWP
      • Videos
      • Wealth Creation

      Latest Posts

      Association of Mutual Funds in India: MF Association Role & Objectives

      Association of Mutual Funds in India: MF Association Role & Objectives

      March 23, 2023
      What are Auto Sector funds? Are they a good investment option?

      What are Auto Sector funds? Are they a good investment option?

      March 23, 2023

      Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

      • MUTUAL FUND
      • INDEX FUND
      • ETF
      • PMS
      • AIF
      • PARTNERS
      • INVESTOR EDUCATION
      • INTERNATIONAL BUSINESS
      • Home
      • Videos
      • Podcast
      • 5 Keys of Investing
      • Wealth Creation Thoughts

      Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

      Welcome Back!

      Login to your account below

      Forgotten Password?

      Retrieve your password

      Please enter your username or email address to reset your password.

      Log In
      Are you sure want to unlock this post?
      Unlock left : 0
      Are you sure want to cancel subscription?