Mutual fund

Mutual Funds

Mutual funds, in a simple way, are basically money pooled in by a large number of people to create fund and fund is managed or invested by professional experts. Investing in mutual funds lets you stay relax at home and let professionals manage your investments.

There are different types of mutual funds available in the market based on the risk and return. Higher the risk, higher the return. Details about the major categories are as under:

Equity Mutual Funds

Multi capLarge capLarge & mid cap Mid capSmall capSectoral

Open ended fund investing in large size, medium size and small size company shares.

Minimum investment in shares: 65% 

Open ended fund investing mostly in large size company shares.

Minimum investment in shares: 80%

Open ended fund investing in large size and medium size company shares.

Minimum investment in large size and  medium size companies: 35% each

Open ended fund investing mostly in medium size company shares.

Minimum investment in medium size companies: 65%

Open ended fund investing mostly in small size company shares.

Minimum investment in small size companies: 65%

Open ended fund investing mostly in shares of companies in a particular sector such as infrastructure, banking, pharma etc.

Minimum investment in small size companies: 65%

Hybrid Mutual Funds

ConservativeBalancedAggressiveDynamic allocationMulti Asset

Open ended fund investing mostly less risky schemes. 

Less risky schemes: 75% to 90%

Open ended fund investing in both shares and less risky schemes. 

In shares: 40% to 60%. 

Less risky schemes: 40% to 60%

Open ended fund investing in mostly shares and less risky schemes.

In shares: 65% to 80%

Less risky schemes: 20% to 35%

Open ended fund investing in mostly shares and less risky schemes dynamically. Based on market conditions allocation keep on changing frequently.

Open ended fund investing in at least three asset type schemes.

Debt Mutual Funds

Long durationMedium durationShort durationUltra short durationLiquidOver night

Open ended fund investing in less risky schemes.

Duration: More than 7 years

Open ended fund investing in less risky schemes.

Duration: between 3 to 4 years

Open ended fund investing in less risky schemes.

Duration: between 1 to 3 years

Open ended fund investing in short term less risky schemes.

Duration: between 3 to 6 months

Open ended fund investing in short term less risky schemes.

Duration: upto 91 days

Open ended fund investing in over night schemes.

Duration: 1 day

Other Mutual Funds

IndexRetirementChildrenELSS

Open ended fund copying the index pattern.

Minimum investment in shares: 95%

Open ended fund for investment for retirement solutions

Minimum investment duration: 5 years or retirement, whichever is earlier

Open ended fund for investment for children

Minimum investment duration: 5 years or child attains the legal age, whichever is earlier

Open ended fund investing in equity linked saving scheme for tax benefits.

Minimum investment duration: 3 years