What is Mutual fund,Its Type & Category of It?

mutual fund What is Mutual fund,Its Type & Category of It?

 

What is a Mutual fund, Its Type & Category of It?

 

Mutual Fund

Mutual Fund is a type of Regular Investment made up of money taken from many investors to invest in Securities like Stock, Bond, Debt, Money Market Instrument, and other financial Assets. 

 

  • It is like a type of Saving Deposit where you can deposit a minimum amount of Rs. 500/- for Future Use.
  • It gives more return than Saving Deposit of Bank and Post office.
  • But it totally depends on the Market Movement.
  • Read all Instructions before Investment.

Further, You should Know the Category Of Mutual Fund and which is best for Investment & gives more return.

 

So, Let’s Discuss Type Of Mutual Fund-

 

Type of Mutual Fund:-

1.Equity

2.Debt

3.Hybrid

4.Commodities

 

1. Equity Mutual Fund

The Investment of Mutual Funds in Stock is Known as Equity Mutual Fund. Due to this, it is called Ideal Investment. It is also known as Stock Fund.

 

2. Debt Mutual Fund

The Investment of Mutual Funds in Fixed Income Generating Securities like Government Securities, Debentures, Corporate Bonds, etc. are Called Debt Mutual Fund.

It is also known as the “Fixed-Income Fund“.

It is a stable income fund.

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3. Hybrid Mutual Fund

The Investment of Mutual Funds in more than one security like stocks, bonds, debentures, etc. are known as Hybrid Mutual Fund.

It is also known as “Exchange-Traded Funds (ETFs)” OR  “Balanced Funds” OR “Asset Allocation Funds”.

 

4. Commodity Mutual Fund

The Investment of Mutual Funds in Commodity like Gold, Silver, Crudeoil, Copper, etc. is known as Commodity Mutual Fund.

It is the High Risky Investment Fund.

It gives High Return on Investment in a Short period of time.

After reading the above details you got a clear vision about Types of Mutual Fund.

 

Type of Mutual Fund Return on Investment Risk Criteria
Equity Mutual Fund Good Low
Debt Mutual Fund Fixed Very Low
Hybrid Mutual Fund More than Equity & Debt Riskier than Equity & Debt
Commodity Mutual Fund High High Risky

 

Category of Mutual Fund


1. ELSS

  • Full form – Equity Linked Saving Scheme.

It is a tax saving mutual fund.

It can save up to Rs. 46,800 in a financial year under Section 80C.

 

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Features Of ELSS:-

  • The lowest Lock-in period of 3 Years.
  • Higher interest rates than FD/PPF.
  • Option to invest Monthly (SIP).
  • Invest as low as Rs.500/-.
  • Get your 80C investment proof instantly and submit to HR.
  • Investment in ELSS will double Approximately in 5 years.

 

You can get Dual benefit With ELSS Mutual Fund Investment:-

  1. Saving On Taxes.
  2. Higher Return on Investment compared to bank FD, PF, NSC, and other tax-saving investment options.

 

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Comparison Between ELSS and Other Tax Saving Investment

 

Investment Returns Lock-In-Period Tax on Returns
5-Year Bank Fixed Deposit 6% to 7% 5 years Yes
Public Provident Fund (PPF) 7% to 8% 15 years No
National Savings Certificate 7% to 8% 5 years Yes
National Pension System (NPS) 8% to 10% Till Retirement Partially Taxable
ELSS Funds 15% to 18% 3 years Partially Taxable

 

Top-performing ELSS Funds

  1. Aditya Birla Sun Life Tax Relief 96 Growth.
  2. Axis Long Term Equity Fund.
  3. DSP Tax Saver Fund Growth.

For Investment in this type of mutual fund Click Here.

 

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2.Large cap

The Investment of Mutual Fund in Large Market Capitalization Company is called Large Cap Mutual Fund.

Large Market Capitalization Company is Trustworthy, Reputable, and Strong. These are old and well-established Market players with a Good Track Record like Reliance Industries.

These companies generate wealth for their investor slowly and Steadily over a long period of time.

This Mutual Fund is Ideal for Investors because it has lower risk than Mid Cap Mutual Fund & Small Cap Mutual Fund. It gives a good return over a long period of time.

So, Investment in this mutual fund is safe and you can put your money in this mutual fund.

For Investment in this type of mutual fund Click Here.

?cid=2190011 What is Mutual fund,Its Type & Category of It? 

3.Mid Cap

 

The Investment of Mutual Fund in Middle Capitalization Company is called Mid Cap Mutual Fund.

Middle Capitalization Company are those which lie between Large-Cap Company & Small Cap Company in terms of Market Capital.

Mid Cap Company gives more focus on market expansion. So, its Share prices are more volatile than large-cap companies.

Mid-cap Company share prices move fast ups and downs.

Since it’s more focused on the market expansion that’s why it invests in new- new projects in which sometimes some projects may not be successful.

That’s why Investment in this mutual fund is riskier than a large-cap company.

But, Mid Cap Mutual Fund gives more return on your investment.

So, Remember and be aware if you are investing in this type of mutual fund because Return is more than Risk is also High.     

For Investment in this type of mutual fund Click Here.

 

4.Small Cap

 

The Investment of Mutual Fund in Small Capitalization Company is called Small Cap Mutual Fund.

Since these companies are new entrants to the market so more focus on the market expansion.

It gives more return than Mid Cap & Large Cap.

Remember always that if the market sentiment is good then it goes quick high but market sentiment is not good then it quickly goes down. 

If you bear more risk then invest in this type of mutual fund.

For Investment in this type of mutual fund  Click Here.

 

5.Large & Mid Cap

 

The Investment of Mutual Fund is in both Large Capitalization Company & Middle Capitalization Company is called Large & Mid Cap Mutual Fund.

Return on Investment is good is high & period is for 3-4 Years.

These Mutual Fund select the largest stocks of the Market which has a higher market capitalization.

To see & Invest in this mutual fund Click Here.

 

?cid=2186331 What is Mutual fund,Its Type & Category of It?

 6.Multi Cap

 

In this Mutual Fund Investment is done in all types of Indian Shares which is listed on NSE & BSE.

It also gives a high return on Investment.

Choose to Invest in this Mutual Fund Click Here.

 

7. Value Oriented

 

The Investment of Mutual Fund in Undervalued Companies Stock is called Value-Oriented Mutual fund.

The Value of Stocks is Undervalued due to some reason for the company but in the future, its Stock value will be raised.

Investors who have Market Knowledge over Undervalued Stock, they Invest in this type of Mutual Fund.

If you have Knowledge then invest in these Mutual funds because in the future it will give more return on your investment.

For this, you would have patience. 

For Investment Click Here!

 

8. Thematic- Mutual Fund

 

The Investment of a Mutual Fund across a common sector/theme is called a Thematic mutual fund.

This means, if the fund is built on an infrastructure theme then the investment would be in related stocks like Infrastructure Companies, Cement Companies, Steel Companies & Other related Companies.

Thematic Funds are more diversified funds and give investors the opportunity to earn high yield due to growth in particular sectors.

This is Riskier Fund because it totally depends on particular sector growth.

 
For Example:-

 

 

After this, All are Thematic Mutual Fund, so just click on and go to the investment site.

 

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9. Sectoral – Banking

10. Thematic-Consumption

11. Sectoral – Infrastructure

12. Thematic – PSU

13. Sectoral – Pharma

14. Sectoral – Technology

15. Thematic – MNC

16. International

17. Thematic – Energy

               

Some, 5 Star Rated Equity Mutual Fund

 

Mirae Asset Tax Saver Fund Direct-Growth

Mirae Asset Tax Saver Fund Regular-Growth

Axis Long Term Equity Fund – Growth

Axis Long Term Equity Direct Plan-Growth

JM Tax Gain Direct Plan-Growth

Aditya Birla Sun Life Tax Relief 96 Direct-Growth

Motilal Oswal Long Term Equity Fund Direct-Growth

Motilal Oswal Long Term Equity Fund Regular – Growth

show?id=nYScWeP9tEs&bids=717612 What is Mutual fund,Its Type & Category of It?

 

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