(23 Types) Types of Mutual Funds | Types Of Mutual Fund

Types Of Mutual Fund  – Hello friends, welcome to today's new blog post, in which we will talk about how many types of mutual funds are there. Today's date, every person wants to invest his money in such a place where his money is safe and he can also get good profits in the future, so most people like to invest in mutual funds very much.

You must have come across many advertisements for mutual funds on TV or on your mobile device. We have also told you about what is a mutual fund in one of our previous articles, so in today's particular article we will only discuss the types of mutual funds.

So let's start today's article without any delay – what is a mutual fund?

What is Mutual Fund

sequence

1 What is Mutual Fund (Mutual Fund )

2 Types Of Mutual Funds

3 Types of Mutual Funds by Asset Class

3.1 #1 – Equity Mutual Fund

3.2 #2 – Debt Mutual Fund

3.3 #3 – Hybrid Fund

4 Types of Mutual Funds According to Structure

4.1 1. Open-Ended Fund

4.2 2. Close-ended Fund

5 Types of Mutual Funds as per Fund Manage

5.1 1. Actively Managed Fund

5.2 2. Passively Managed Fund

6 Other Types of Mutual Funds

6.1 1. International Fund

6.2 2. Real Estate Fund

6.3 3. Gold Fund

6.4 4. Exchange Trader Fund

7 Which are the major mutual fund companies in India

8 Conclusion: Types Of Mutual Fund 

8.1 Related Articles 

Mutual Fund is a type of Asset Management Company that deposits money from many people and invests it in a professional manner in a place where people's money is safe and they also get good profits.

Whatever profit the company receives in mutual funds, the company returns a certain percentage of the money to the people who gave money to the company and some company keeps its commission. Many expert investors live in mutual funds while investing people's money. These expert investors are called fund managers.

At present, there are many mutual fund houses in the country. Like- such as SBI Mutual Fund, ICICI Prudential, Motilal Oswal, etc.

Types of Mutual Funds

There are many types of mutual funds, we will give you the details of all of them according to the point below. We can mainly divide all types of mutual funds into parts, all of them are as follows –

• Mutual Funds as per Asset Class
• Structure wise Mutual Funds
• Mutual Funds as per Fund Management
• Other types of mutual funds
• Let us now look at all these in detail.

Types of Mutual Funds by Asset Class

According to the Assets Class, there are three types of Mutual Funds –

• Equity Mutual Fund
• Debt Mutual Fund
• Hybrid Mutual Fund

#1 – Equity Mutual Fund

By its name, you must have come to know that whatever money the company takes as a loan from the people here, the company invests all the money in the stock market and whatever profit is received from there, its dividend is given to its investors. provides.

There are also many types of equity mutual funds, which are as follows.

1. Large Cap Fund

Funds that invest in companies with Large Market Capital are called Large Cap Funds. Large Market Capital Those companies are called whose market capitalization is more than 1 lakh crores. These include the names of companies like Reliance Industries, TCS, and L&T.

2. Mid Cap Fund

Mutual Funds that invest in Mid Cap companies are called Mid Cap Funds. Such companies come in Mid Cap Fund, whose market capitalization is more than 5 thousand crores and less than 1 lakh crores. There is no risk in this type of mutual fund and neither does it have a lot of growth.

3. Small Cap Fund

When Mutual Funds are invested in Small Cap Fund companies then it is called Small Cap Fund. Such companies come under Small Cap whose market capitalization is 5 thousand crores. Investing money in these types of companies is risky but the potential for growth is also strong.

4. Sector Fund

A sector fund means that when a company takes any money from you, it invests it only in companies of a particular type of sector, it is called a sector fund mutual fund. This fund is also risky because your money in this fund completely depends on that sector. If your fund is invested in that sector, which sector is not performing well, then you may suffer a loss. Like- as Reliance Media & Entertainment and Sun Frama companies.

5. Diversify Equity Fund

In this type of mutual fund, Fund House invests its money in companies with different sectors and different market capitals. Investing money in this type of fund is risk-free for you. Because with the diversification of the investment, the possibility of profit also increases.

6. Dividend Yield Scheme

In the Dividend Yield Scheme, companies give some part of their profits to their shareholder, which we call Dividends or Dividends. By the way, it is not necessary that companies will give dividends of their profits to their shareholders. The decision of whether to pay a dividend to the shareholder or not is taken by the board operator of that company and the money invested is safe here.

7. ELSS (Equity Linked Saving Scheme)

If you want to save tax then you can invest money in this type of mutual fund scheme and you cannot invest in this scheme for less than 3 years. In ELSS, your money gets locked for 3 years. In this scheme, you get an exemption from income tax on returns up to 1.5 lakh under section 80C.

 8. Thematic Fund

Thematic Funds are invested by mutual fund companies in Themes. Cement companies, paint companies, and construction companies come under this Mutual Fund. Like HDFC Housing Opportunity Fund is a Thematic Fund, which invests in Housing Theme.

#2 – Debt Mutual Fund

Mutual Funds that invest people's money in things like fixed income assets like Denture, Bond, and certificates of Deposit are called Debt Instrument Fund or Debt Mutual Fund.

Through Debt instruments, the government and companies raise money from the market as a loan and then after a certain period, return the money with interest to the people from whom they had taken the money. The returns will be relatively less.

There are four types of Debt Mutual Funds, we will give you their details according to the points below, let's know –

1. Gilt Fund

Funds that are invested only in Government Securities are called Gilt Funds. Government Securities are issued by the government, so there is no risk in it. Its biggest feature is that if there is a loss or profit here, you definitely give your return. So you can invest money in this type of fund. Gilt Funds are also of two types, Long Term Gilt and Short Term Gilt.

• Long Term Gilt – Such a fund in which investment is made in government securities for a long time is called Long Term Gilt. One can invest in this for a period of 5 years to 30 years.
• Short-Term Gilt – Such a fund in which investment is made in government securities for a short period is called Short-Term Gilt. It is usually invested for less than 5 years.

2. Junk Bond Scheme

In Junk Bond Scheme, investment is done in Corporate Bonds. There is a lot of risk in this but you will get a lot of profit from here.

3. Fixed Maturity Plans

They are exactly like a bank and have minimum risk just like Fixed deposits. They have a fixed maturity period of 3 years, 5 years, 7 years, etc. These plans are mostly Certificate Of Deposit, Commercial Papers, Corporate Bonds, etc. Invest in and you will get the same return as you get by investing money in bank FD.

4. Liquid Scheme

Under the Liquid Scheme, the company invests money in Money Market Instrument. Money Market Instrument contains such financial instruments, through which the company can invest money in short, for this, it takes money from investors as a loan. Liquid Funds invest in mutual funds for a very short period of time. Such as Commercial Paper, Certificate Of Deposits, Treasury Bills, and Term Deposits.

Liquid funds give more returns than savings accounts and investing money here is a very less risky task. The biggest feature of this fund is that if you need money, you can also withdraw your money here ahead of time.

#3 – Hybrid Fund

Such a fund in which Mutual Fund invests people's money in both Equity and Debt is called Hybrid Fund. There are three types of Hybrid Fund – we will give you detailed information about all of them below –

1. Monthly Income Plan Fund

 Mostly 60 to 90% of investment in this fund is done in Debt Instruments and the rest of the money is invested in Equity. As I told you that most of its money is invested in things like debt instruments, so the money here is quite safe.

Although it would be completely wrong to say that your money is completely safe because some part of it is also invested in equity shares i.e. stock market, you may have to take some risk here. But overall investing money here can prove beneficial for you.

2. Balanced Fund

In Balanced Fund, investors' money is invested in Debt and Equity in a balanced manner. You must be thinking that a balanced fund is a type of balanced mutual fund and investing money here is not risky for you, then you are thinking wrong.

Because most of the money is invested in equity, equity means that the way the profit is more in the stock market and the stock market, then you may have to bear the loss too.

3. Arbitrage Fund

Through Arbitrage Funds, investments are made in the money-changing market of the people. In this, most of the money is invested in the stock market and if you invest money in the stock market, then there is also a risk. In this, the returns keep getting less and more.

Types of Mutual Funds by Structure

According to the structure, there are mainly two types-

• Open Ended Fund
• Closed Ended Fund

1. Open-ended fund

All the mutual fund schemes are open-ended. You can sell or buy this fund anytime and you can issue as many units as you want under this fund.

2. Close-Ended Fund

Very few mutual funds are closed-ended funds. The main reason for this is that all the units in it have a fixed tenure and you cannot buy anyone whenever you want. To sell and buy it, the company has to launch the NFO-New Fund offer, it can be sold or bought.

Apart from this, if you want to sell this fund, then you will have to wait until the maturity of your fund is getting completed only then you will be able to sell it. In such a way, these types of funds are listed in the stock market, but the problem is that people who sell and buy this type of fund will hardly meet you.

Types of Mutual Funds as per Fund Manage

According to fund management, there are two types of Mutual Funds-

• Actively Managed Fund
• Passively Managed Fund

1. Actively Managed Fund

All kinds of things related to investment in this type of fund are decided by the fund manager and the fund manager acts as the active manager in this type of mutual fund. Its main work is that in which stocks to invest, how to invest money in the fund, apart from that, how to get maximum profits, etc. Most importantly, all the important decisions related to the fund are made by the fund manager.

2. Passively Managed Fund

Investment in this fund is not managed through the Fund Manager. In this, investment is made in Sensex and Nifty and how much return you will get, also depends on Sensex and Nifty overall.

Other types of mutual funds

Apart from all this, there are other types of mutual funds as well, which are as follows –

• International Fund
• Real Estate Fund
• Gold Fund
• Exchange Trader Fund

1. International Fund

In the mutual fund of the International Fund, money is invested in foreign companies, due to which profits are also received in large quantities.

2. Real Estate Fund

Investments in this fund are in companies related to real estate, in which the returns are very high and fluctuating.

3. Gold Fund

The money in this type of fund is invested in gold, and as you know that the price of gold always fluctuates, so the return here depends on the overall market.

4. Exchange Trader Fund

In this investment, the fund trades like a stock in the stock market.

Which are the major mutual fund companies in India

Following are some of the major mutual fund companies in India and their funds –

• ICICI Prudential Mutual Fund
• HDFC Mutual Fund
• Motilal Oswal
• Reliance Mutual Funds
• Aditya Birla Sun Life Mutual Fund
• SBI Mutual Fund
• UTI Mutual Fund
• Kotak Mahindra Fund
• Franklin Templeton Mutual Fund etc.

Conclusion: Types of Mutual Funds 

In this blog post today, we have provided you with complete information about the types of mutual funds. We have tried our best to tell you about all types of mutual funds in this blog post, but still, if there is any type of mutual fund left, then you tell us in the comment box, and we will definitely implement your suggestion.

So, friends, that's all in this article, we sincerely hope that you must have liked this article. You share this article as much as possible and also spread the correct information about mutual funds to others.