| Equity Funds |
These funds primarily invest in stocks or equity securities, aiming for long-term capital appreciation. They can focus on specific sectors, market capitalizations (large-cap, mid-cap, small-cap), or investment styles (growth, value, blend). |
| Debt Funds |
Debt funds invest predominantly in fixed-income securities such as government bonds, corporate bonds, and money market instruments. They aim to generate regular income through interest payments while minimizing the risk of capital loss. |
| Balanced/Hybrid Funds |
Balanced funds invest in a mix of both equities and fixed-income securities, offering investors exposure to both asset classes within a single fund. They aim to provide a balance between capital appreciation and income generation. |
| Index Funds |
Index funds aim to replicate the performance of a specific market index, such as the S&P 500 or the Nifty 50, by investing in the same securities in the same proportions as the index components. They typically have lower expense ratios compared to actively managed funds. |
| Sector Funds |
Sector funds focus on specific sectors of the economy, such as technology, healthcare, or energy. They aim to capitalize on the growth potential of a particular industry but carry higher sector-specific risks. |
| Money Market Funds |
Money market funds invest in short-term, highly liquid instruments such as Treasury bills, commercial paper, and certificates of deposit. They aim to provide capital preservation and liquidity while generating modest returns. |
| Tax-saving Funds (ELSS) |
Equity Linked Savings Schemes (ELSS) are tax-saving mutual funds that offer tax benefits under Section 80C of the Income Tax Act in India. These funds primarily invest in equities and have a lock-in period of three years. |
| Fund-of-Funds (FoFs) |
Fund-of-Funds invest in other mutual funds rather than individual securities, offering diversification across multiple funds and fund managers. They are suitable for investors looking for a simplified investment approach. |
