- Summary of  common type of  Funds

Type of Mutual Fund 

1

Fund Manager simply copies the index and makes an effort to keep the portfolio constantly in sync with its index.

Index Fund

2

An equity mutual fund invests in stocks/shares.  They offer the potential for higher returns on investment.

Equity Fund

3

A hybrid fund is a type of mutual fund that combines the features of both Debt & Equity mutual funds.

Hybrid Fund

4

Maintaining a balance between risky and safe investments is the goal of a balanced mutual fund.

Balanced Fund

5

Invests in short-term government bonds (CDs or Treasury bills).  Suitable for short term 1 to 6 month

Money Market Fund

6

Invests in long-term govt. securities, Indian companies bond. Funds are safer than other types of funds.

Bond Fund

7

 FOF scheme’s investments are made in the units of another mutual fund scheme.

Fund of Funds

It’s important to consider your investment goals and risk tolerance when selecting a mutual fund.

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