Types of mutual funds

Mutual funds and coffee have one thing in common. Both have a very wide range, which can be downright confusing if you are not familiar with them. Which is why we decided to simplify the universe of mutual funds for you. This will help you pick the right mutual fund/s. At the broadest level, mutual funds are classified into three types: Equity funds The primary criterion for classifying equity funds is the size of the companies they invest in. There are funds that mostly focus either on large companies or medium-sized or small companies. In addition, there are also those that keep their assets distributed among all of these in some ratio. Then there are other equity funds that invest in a particular sector (such as banking, technology etc.) or a broad-based theme (business cycles, housing opportunities, etc.). Debt funds These funds are categorised based on the maturity profile and the type of the underlying instrument. Hybrid funds These funds have a mix

This article was originally published on March 01, 2022, and last updated on September 27, 2022.