{"id":11220,"date":"2022-07-07T21:03:24","date_gmt":"2022-07-07T15:33:24","guid":{"rendered":"https:\/\/blogs.univest.in\/?p=11220"},"modified":"2026-02-26T16:36:43","modified_gmt":"2026-02-26T11:06:43","slug":"types-of-mutual-funds-in-india","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/","title":{"rendered":"Types of Mutual Funds in India\u00a0"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Mutual_Funds\" title=\"Mutual Funds\">Mutual Funds<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Understanding_the_Operation_of_Mutual_Funds\" title=\"Understanding the Operation of Mutual Funds\">Understanding the Operation of Mutual Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Mutual_Fund_Types\" title=\"Mutual Fund Types\">Mutual Fund Types<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Types_of_Mutual_Funds_by_Structure\" title=\"Types of Mutual Funds by Structure\">Types of Mutual Funds by Structure<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Open-Ended_Funds\" title=\"Open-Ended Funds:\">Open-Ended Funds:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Closed-Ended_Funds\" title=\"Closed-Ended Funds:\u00a0\">Closed-Ended Funds:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Intervals_Fund\" title=\"Intervals Fund:\">Intervals Fund:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Mutual_fund_types_according_to_asset_class\" title=\"Mutual fund types according to asset class\">Mutual fund types according to asset class<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Equity_funds\" title=\"Equity funds\u00a0\">Equity funds\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Debt_funds\" title=\"Debt funds\u00a0\">Debt funds\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Money_Market_Funds\" title=\"Money Market Funds:\u00a0\">Money Market Funds:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Balanced_or_Hybrid_Mutual_Funds\" title=\"Balanced or Hybrid Mutual Funds:\">Balanced or Hybrid Mutual Funds:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Mutual_fund_types_according_to_investing_goals\" title=\"Mutual fund types according to investing goals\">Mutual fund types according to investing goals<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Growth_Funds\" title=\"Growth Funds:\u00a0\">Growth Funds:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Income_funds\" title=\"Income funds:\u00a0\">Income funds:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Liquid_funds\" title=\"Liquid funds:\u00a0\">Liquid funds:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Tax-Saving_Funds_ELSS\" title=\"Tax-Saving Funds (ELSS):\">Tax-Saving Funds (ELSS):<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Fixed_Maturity_Funds\" title=\"Fixed Maturity Funds:\u00a0\">Fixed Maturity Funds:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Capital_Protection_Funds\" title=\"Capital Protection Funds:\u00a0\">Capital Protection Funds:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Pension_Funds\" title=\"Pension Funds:\">Pension Funds:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Mutual_fund_types_according_to_specialty\" title=\"Mutual fund types according to\u00a0specialty\">Mutual fund types according to\u00a0specialty<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Index_funds\" title=\"Index funds:\">Index funds:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Fund_of_funds\" title=\"Fund of funds:\u00a0\">Fund of funds:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Sector_funds\" title=\"Sector funds:\">Sector funds:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#International_funds\" title=\"International funds:\">International funds:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Gilt_Funds\" title=\"Gilt Funds:\u00a0\">Gilt Funds:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Exchange_traded_funds\" title=\"Exchange traded funds:\">Exchange traded funds:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/univest.in\/blogs-2\/types-of-mutual-funds-in-india\/#About_the_Author\" title=\"About the Author\">About the Author<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Mutual_Funds\"><\/span><b>Mutual Funds<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A mutual fund is a collection of funds from a number of individuals used for buying stocks, bonds, or other assets. A number of investors hold mutual funds, which are managed by experts. To put it another way, a mutual fund is a set of securities that are held by a number of investors and are overseen by a fund manager.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Understanding_the_Operation_of_Mutual_Funds\"><\/span><b>Understanding the Operation of Mutual Funds<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">When you invest in a mutual fund, you combine your funds with those of other investors. A fund manager who makes investments in financial assets like stocks, bonds, etc. manages the money that you and other investors have pooled together. Every day, the mutual fund is handled. Here is a flowchart showing how mutual funds operate:<\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-11225 size-full\" src=\"https:\/\/univest.in\/wp-content\/uploads\/2022\/07\/11111.png\" alt=\"mutual funds in india\" width=\"489\" height=\"388\" srcset=\"https:\/\/univest.in\/blogs-2\/wp-content\/uploads\/2022\/07\/11111.png 489w, https:\/\/univest.in\/blogs-2\/wp-content\/uploads\/2022\/07\/11111-300x238.png 300w\" sizes=\"(max-width: 489px) 100vw, 489px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mutual_Fund_Types\"><\/span><b>Mutual Fund Types<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">As a productive investing channel, mutual funds have recently gained a lot of appeal. Your investment objective will determine the best sort of fund to use for your requirements.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The following is a list of the most popular mutual fund kinds in India:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Equity Funds<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Debt Funds<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Money Market Funds<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Index Funds<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Balanced Fund<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Income Fund<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fund of Funds<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Speciality Fund<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The nation&#8217;s asset management firms provide a variety of additional fund kinds. In the sections below, we have divided the same into categories depending on structure, asset type, investing purpose, speciality, and risk.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Types_of_Mutual_Funds_by_Structure\"><\/span><b>Types of Mutual Funds by Structur<\/b><b>e<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><span class=\"ez-toc-section\" id=\"Open-Ended_Funds\"><\/span><b>Open-Ended Funds:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">These are funds whose shares are available for purchase or redemption at any time throughout the calendar year. The current NAV is used for all acquisitions and redemptions of these fund units. In essence, these funds will let investors continue investing for as long as they choose. The amount that may be invested in the fund is unrestricted. They also tend to be actively managed, which implies that a fund manager selects the locations for the placement of investments. Due to the active management, these funds also charge a fee, which may be larger than that of passively managed funds. They are the perfect investment for people who desire both investment and liquidity.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Closed-Ended_Funds\"><\/span><b>Closed-Ended Funds:<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">These are financial products whose shares may only be bought during the first offer period. At a predetermined maturity date, units may be redeemed. These plans are frequently posted for trading on a stock market to offer liquidity. In contrast to open ended mutual funds, the units or stocks must be sold through the stock market at the current share price in order to be sold after being purchased.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Intervals_Fund\"><\/span><b>Intervals Fund:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">The characteristics of both open-ended and close-ended funds are present in interval funds, which are opened for share repurchases at certain points over the fund&#8217;s lifespan. During certain times, the fund management business makes an offer to repurchase units from current unitholders. Shares may be sold by unitholders in favour of the fund if they so choose.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mutual_fund_types_according_to_asset_class\"><\/span><b>Mutual fund types according to asset class<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><span class=\"ez-toc-section\" id=\"Equity_funds\"><\/span><b>Equity funds<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">These funds put money into company shares or equity. These funds are regarded as high-risk yet frequently offer substantial returns. Specialty funds for equity investments can be found in the banking, fast-moving consumer goods, and infrastructure sectors, to mention a few. They are associated with the markets and frequently. Some more types of Equity Funds are Large Cap Fund, Small Cap Fund, Mid Cap funds, Multi Cap Fund.\u00a0 Eg HDFC Top 100 fund<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Debt_funds\"><\/span><b>Debt funds<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">They make investments in fixed income securities such as corporate debentures, government bonds, and other debt instruments. They offer set returns and are regarded as secure investments. These funds do not withhold taxes from investors&#8217; earnings at source, thus if such earnings exceed Rs. 10,000, the investor is responsible for covering the tax bill. Overnight Fund, Liquid Fund, Short Duration Fund, Dynamic FUnd are some of the types of Debt Fund. E.g. Nippon India Banking &amp; PSU Debt Fund\u00a0<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Money_Market_Funds\"><\/span><b>Money Market Funds<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">These are funds that invest in readily tradable securities like T-Bills and Commercial Paper. They are regarded as secure investments for people seeking quick but modest returns on spare cash. Cash markets are another name for money markets, and they have credit, reinvestment, and interest risk hazards. E.g. Nippon India Money Market Fund, Tata Money Market Fund<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Balanced_or_Hybrid_Mutual_Funds\"><\/span><b>Balanced or Hybrid Mutual Funds:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">A combination of asset types is invested in by balanced or hybrid funds. In some situations, the ratio of equity to debt is larger than in others, and vice versa. This creates a balance between risk and reward. Franklin India Balanced Fund-DP (G), for instance, invests 65% to 80% of its assets in stocks and the remaining 20% &#8211; 35% in the debt market, making it an example of a hybrid fund. This is true because the risk on the debt markets is smaller than on the stock markets. E.g. Parag Parikh conservative Hybrid Fund<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mutual_fund_types_according_to_investing_goals\"><\/span><b>Mutual fund types according to investing goals<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><span class=\"ez-toc-section\" id=\"Growth_Funds\"><\/span><b>Growth Funds:\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">These plans invest money largely in equities stocks with the intention of generating capital growth. They are regarded as riskier funds that are best for individuals with a lengthy investment horizon. They are perfect for anyone searching for larger returns on their investments because they are risky funds. E.g Axis Growth Opportunities Fund<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Income_funds\"><\/span><b>Income funds<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">These plans invest capital largely in fixed-income securities like bonds and debentures in order to safeguard investors&#8217; capital and generate consistent returns.E.g. UTI Short Term Income Fund<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Liquid_funds\"><\/span><b>Liquid funds<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">In these plans, money is typically invested in short- or extremely short-term securities, such as. T-Bills, CPs, and other instruments used to provide liquidity They are regarded as low risk investments with moderate returns that are best suited for individuals with short investment horizons.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Tax-Saving_Funds_ELSS\"><\/span><b>Tax-Saving Funds (ELSS):<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Investments in equity shares are the main focus of tax-saving funds (ELSS). Under the Income Tax Act, investments made in these funds are eligible for deductions. They are regarded as having high risk, but if the fund does well, they may also have substantial profits. E.g Nippon tax saver fund, tata india tax savings fund\u00a0<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Fixed_Maturity_Funds\"><\/span><b>Fixed Maturity Funds:\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Fixed maturity funds invest assets in debt and money market instruments with maturities that are either the same as or earlier than the fund&#8217;s.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Capital_Protection_Funds\"><\/span><b>Capital Protection Funds:\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">These use pools of money that are invested in both the stock and fixed income markets. This is done to make sure that the invested principal is safeguarded.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Pension_Funds\"><\/span><b>Pension Funds:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Mutual funds invested in with a very long-term objective are known as pension funds. They are mainly designed to offer consistent returns around the time the investor is prepared to retire. The assets in this type of fund might be split between stocks and debt markets, with equities acting as the riskier portion of the investment and offering larger returns, and debt markets balancing the risk by offering lower but consistent returns.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mutual_fund_types_according_to_specialty\"><\/span><b>Mutual fund types according to\u00a0<\/b>specialty<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><span class=\"ez-toc-section\" id=\"Index_funds\"><\/span><b>Index funds:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Index funds invest in securities that correspond to a specific index on an exchange in order to mimic the movement and returns of the index, such as purchasing shares that correspond to the BSE Sensex. E.g. UTI Nifty 50 Index fund, HDFC Index S&amp;P BSE Sensex Fund<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Fund_of_funds\"><\/span><b>Fund of funds:\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">These are mutual funds that invest in other funds, and their returns are based on how well those target funds perform. Multi manager funds is another name for these funds. Because the funds that investors participate in really hold other funds beneath them, reducing risk from any one fund, these investments can be seen as quite secure.\u00a0<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Sector_funds\"><\/span><b>Sector funds:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">They make investments in a certain market sector, such as real estate. Only those items or businesses related to the infrastructure sector are purchased by infrastructure funds. Returns are dependent on how well the selected sector performs. The level of risk associated with these plans varies on the industry. E.g tata digital india fund direct plan growth, nippon pharma fund, tata india consumer fund<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"International_funds\"><\/span><b>International funds:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Foreign funds, usually referred to as international funds, provide investments in businesses with global reach. These businesses could be found in developing nations as well. Only businesses based in the investor&#8217;s own nation will not get investment.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Gilt_Funds\"><\/span><b>Gilt Funds:\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Long-term investments in government securities are made via Gilt Funds, a type of mutual fund. They are essentially risk-free because they are invested in government securities, making them the ideal investment for individuals who don&#8217;t want to take chances. E.g. SBI Magnum Gilt Fund, Nipon India Guilt Securities Fund.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Exchange_traded_funds\"><\/span><b>Exchange traded funds:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">ETFs are mutual funds that combine open and closed ended investments and are traded on stock exchanges. These funds have a lot of liquidity and are passively managed rather than actively managed. Because they are passively controlled, they frequently have reduced related service charges (entry\/exit load). E.g. SBI ETF Nifty, Nippon Nifty BeEs ETF<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><b>Conclusion<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Choosing a <a href=\"https:\/\/corporatefinanceinstitute.com\/resources\/knowledge\/trading-investing\/mutual-funds\/\" rel=\"nofollow noopener\" target=\"_blank\">mutual fund<\/a> that best meets a customer&#8217;s unique investing goals can be challenging because there are so many different types of mutual funds on the market. The simplest piece of advise in that regard is to start by recognising your own wants. The following stage would be to determine your aim.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Is the goal to accumulate money rapidly, gradually, or at a rapid rate? The risk you are willing to accept should be the final important factor to think about once that has been determined. The funds with the largest risks often give the best returns, according to widespread observation. Therefore, those funds should be chosen if you want returns rapidly and are prepared to face risks. Investing in a medium- or low-risk mutual fund is best if your goal is to develop money gradually.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Investors must carefully study their policy documents before investing since mutual funds always include some level of risk, no matter how little. Reading the contract would also be a good idea to make sure that the investors have a clear understanding of what they have purchased and all risks associated with it.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"About_the_Author\"><\/span>About the Author<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Ketan Sonalkar (SEBI Rgn No INA000011255)<\/p>\n<p>Ketan Sonalkar is a certified SEBI registered investment advisor and head of research at <a href=\"https:\/\/univest.in\/\">Univest<\/a>. He is one of the finest financial trainers, with a track record of having trained more than 2000 people in offline and online models. He serves as a consultant advisor to leading fintech and financial data firms. He has over 15 years of working experience in the finance field. He runs Advisory Services for Direct Equities and Personal Finance Transformation.<\/p>\n<p><em>Note \u2013 This channel is for educational and training purpose only &amp; any stock mentioned here should not be taken as a tip\/recommendation\/advice<\/em><\/p>\n<p><em>You may also like: <strong><a href=\"https:\/\/univest.in\/it-sector-expectations-in-q1fy23\/\">IT Sector<\/a><\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mutual Funds A mutual fund is a collection of funds from a number of individuals used for buying stocks, bonds, or other assets. A number of investors hold mutual funds, which are managed by experts. To put it another way, a mutual fund is a set of securities that are held by a number of<\/p>\n","protected":false},"author":26,"featured_media":26920,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[127,126,128,129,130,131,125,124],"class_list":["post-11220","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market","tag-debt-funds-types","tag-different-mutual-funds","tag-mutual-funds-in-india","tag-nippon-india-mutual-fund","tag-nippon-india-small-cap-fund","tag-open-ended-and-closed-ended-funds","tag-types-of-equity-funds","tag-types-of-mutual-funds"],"metadata":{"_schema_ref":["11166"],"_edit_lock":["1665650521:8"],"_edit_last":["23"],"_nectar_gallery_slider":["off"],"_nectar_quote_author":[""],"_nectar_quote":[""],"_nectar_link":[""],"_nectar_video_m4v":[""],"_nectar_video_ogv":[""],"_nectar_video_poster":[""],"_nectar_video_embed":[""],"_nectar_audio_mp3":[""],"_nectar_audio_ogg":[""],"_post_item_masonry_sizing":["regular"],"_nectar_header_bg":[""],"_nectar_header_parallax":["off"],"_nectar_header_bg_height":[""],"_nectar_page_header_bg_alignment":["top"],"_nectar_header_bg_color":[""],"_nectar_header_font_color":[""],"_wpb_vc_js_status":["false"],"_yoast_wpseo_content_score":["60"],"_yoast_wpseo_estimated-reading-time-minutes":["8"],"nectar_blog_post_view_count":["314"],"_thumbnail_id":["26920"],"_yoast_wpseo_focuskw":["Types of Mutual Funds in India\u00a0"],"_yoast_wpseo_title":["Types of Mutual Funds in India\u00a0"],"_yoast_wpseo_metadesc":["A mutual fund is a collection of funds from a number of individuals used for buying stocks, bonds, or other assets."],"_yoast_wpseo_linkdex":["67"],"_yoast_wpseo_primary_category":["24"],"_schema_json":["a:13:{s:8:\"@context\";s:19:\"https:\/\/schema.org\/\";s:5:\"@type\";s:11:\"BlogPosting\";s:16:\"mainEntityOfPage\";a:2:{s:5:\"@type\";s:7:\"WebPage\";s:3:\"@id\";s:50:\"https:\/\/univest.in\/types-of-mutual-funds-in-india\/\";}s:3:\"url\";s:50:\"https:\/\/univest.in\/types-of-mutual-funds-in-india\/\";s:8:\"headline\";s:32:\"Types of Mutual Funds in India\u00a0\";s:13:\"datePublished\";s:25:\"2022-07-07T21:03:24+05:30\";s:12:\"dateModified\";s:25:\"2022-07-07T21:16:14+05:30\";s:9:\"publisher\";a:4:{s:5:\"@type\";s:12:\"Organization\";s:3:\"@id\";s:32:\"https:\/\/univest.in\/#organization\";s:4:\"name\";s:7:\"Univest\";s:4:\"logo\";a:4:{s:5:\"@type\";s:11:\"ImageObject\";s:3:\"url\";s:62:\"https:\/\/univest.in\/wp-content\/uploads\/2022\/06\/Univest-Logo.png\";s:5:\"width\";i:600;s:6:\"height\";i:60;}}s:5:\"image\";a:4:{s:5:\"@type\";s:11:\"ImageObject\";s:3:\"url\";s:68:\"https:\/\/univest.in\/wp-content\/uploads\/2022\/07\/Untitled-design-22.jpg\";s:5:\"width\";i:1280;s:6:\"height\";i:720;}s:14:\"articleSection\";s:6:\"Market\";s:8:\"keywords\";s:199:\"debt funds types, different mutual funds, mutual funds in india, nippon india mutual fund, nippon india small cap fund, open ended and closed ended funds, types of equity funds, types of mutual funds\";s:11:\"description\";s:264:\"Mutual Funds A mutual fund is a collection of funds from a number of individuals used for buying stocks, bonds, or other assets. A number of investors hold mutual funds, which are managed by experts. To put it another way, a mutual fund is a set of securities that\";s:6:\"author\";a:4:{s:5:\"@type\";s:6:\"Person\";s:4:\"name\";s:14:\"Avneet Dhamija\";s:3:\"url\";s:33:\"https:\/\/univest.in\/author\/avneet\/\";s:5:\"image\";a:4:{s:5:\"@type\";s:11:\"ImageObject\";s:3:\"url\";s:81:\"https:\/\/secure.gravatar.com\/avatar\/4b244dec68772ad327eead8f5575ec8f?s=96&d=mm&r=g\";s:6:\"height\";i:96;s:5:\"width\";i:96;}}}"],"_schema_json_timestamp":["1661799389"],"_yoast_wpseo_wordproof_timestamp":[""],"rank_math_primary_category":["3841"],"rank_math_title":["Types of Mutual Funds in India\u00a0"],"rank_math_description":["A mutual fund is a collection of funds from a number of individuals used for buying stocks, bonds, or other assets."],"rank_math_focus_keyword":["Types of Mutual Funds in India\u00a0"],"rank_math_news_sitemap_robots":["index"],"rank_math_robots":["a:1:{i:0;s:5:\"index\";}"],"rank_math_analytic_object_id":["290"],"post_views_count":["595"],"rank_math_internal_links_processed":["1"],"amazonS3_cache":["a:16:{s:55:\"\/\/univest.in\/blogs\/wp-content\/uploads\/2022\/07\/11111.png\";a:1:{s:9:\"timestamp\";i:1713791849;}s:63:\"\/\/univest.in\/blogs\/wp-content\/uploads\/2022\/07\/11111-300x238.png\";a:1:{s:9:\"timestamp\";i:1713791849;}s:57:\"\/\/univest.in\/blogs-2\/wp-content\/uploads\/2022\/07\/11111.png\";a:1:{s:9:\"timestamp\";i:1778612987;}s:65:\"\/\/univest.in\/blogs-2\/wp-content\/uploads\/2022\/07\/11111-300x238.png\";a:1:{s:9:\"timestamp\";i:1778612987;}s:54:\"\/\/univest.in\/blogs-2\/wp-content\/uploads\/2022\/07\/44.png\";a:1:{s:9:\"timestamp\";i:1772104005;}s:62:\"\/\/univest.in\/blogs-2\/wp-content\/uploads\/2022\/07\/44-300x156.png\";a:1:{s:9:\"timestamp\";i:1772104005;}s:62:\"\/\/univest.in\/blogs-2\/wp-content\/uploads\/2022\/07\/44-768x399.png\";a:1:{s:9:\"timestamp\";i:1772104005;}s:54:\"\/\/univest.in\/blogs-2\/wp-content\/uploads\/2022\/07\/22.png\";a:1:{s:9:\"timestamp\";i:1772104005;}s:61:\"\/\/univest.in\/blogs-2\/wp-content\/uploads\/2022\/07\/22-300x99.png\";a:1:{s:9:\"timestamp\";i:1772104005;}s:62:\"\/\/univest.in\/blogs-2\/wp-content\/uploads\/2022\/07\/22-768x253.png\";a:1:{s:9:\"timestamp\";i:1772104005;}s:54:\"\/\/univest.in\/blogs-2\/wp-content\/uploads\/2022\/07\/33.png\";a:1:{s:9:\"timestamp\";i:1772104005;}s:61:\"\/\/univest.in\/blogs-2\/wp-content\/uploads\/2022\/07\/33-300x50.png\";a:1:{s:9:\"timestamp\";i:1772104005;}s:62:\"\/\/univest.in\/blogs-2\/wp-content\/uploads\/2022\/07\/33-768x127.png\";a:1:{s:9:\"timestamp\";i:1772104005;}s:54:\"\/\/univest.in\/blogs-2\/wp-content\/uploads\/2022\/07\/11.png\";a:1:{s:9:\"timestamp\";i:1772104005;}s:62:\"\/\/univest.in\/blogs-2\/wp-content\/uploads\/2022\/07\/11-300x154.png\";a:1:{s:9:\"timestamp\";i:1772104005;}s:62:\"\/\/univest.in\/blogs-2\/wp-content\/uploads\/2022\/07\/11-768x395.png\";a:1:{s:9:\"timestamp\";i:1772104005;}}"]},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2024\/10\/18181952\/posts-2-2.jpg","_links":{"self":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/11220","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/users\/26"}],"replies":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/comments?post=11220"}],"version-history":[{"count":5,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/11220\/revisions"}],"predecessor-version":[{"id":12291,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/11220\/revisions\/12291"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media\/26920"}],"wp:attachment":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media?parent=11220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/categories?post=11220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/tags?post=11220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}