Mutual funds come in various types, categorized based on investment objective, asset class, structure, and risk. Here’s a complete overview:
Types of Mutual Funds
- Based on Asset Class
| Type | Description | Example |
| Equity Funds | Invest mainly in shares/stocks. Higher return, higher risk. | Large Cap, Mid Cap, Small Cap, ELSS |
| Debt Funds | Invest in fixed-income instruments (bonds, debentures). Lower risk. | Liquid Funds, Short/Long-Term Bonds |
| Hybrid Funds | Mix of equity and debt for balanced growth. | Balanced Advantage Fund, Aggressive Hybrid |
| Money Market Funds | Invest in short-term money market instruments. Very low risk. | Treasury bills, CPs, CDs |
| Commodity Funds | Invest in commodities like gold. | Gold ETFs |
| International Funds | Invest in global markets. | US Equity Fund, Global Tech Fund |
- Based on Structure
| Type | Description |
| Open-ended | You can buy/sell units anytime. No fixed maturity. |
| Close-ended | Fixed maturity. Buy only during NFO (New Fund Offer). |
| Interval Funds | Combine features of open and closed funds. Available at intervals. |
- Based on Investment Goals
| Type | Purpose | Lock-in Period |
| ELSS (Equity Linked Savings Scheme) | Tax-saving under Section 80C | 3 years |
| Retirement Funds | Long-term goal with tax benefits | 5 years or retirement age |
| Children’s Fund | Saving for children’s education/marriage | 5 years or until child turns 18 |
- Based on Market Capitalization (Equity Funds)
| Fund Type | Market Cap Focused On |
| Large Cap Fund | Top 100 listed companies |
| Mid Cap Fund | Companies ranked 101–250 |
| Small Cap Fund | Companies ranked 251+ |
| Multi Cap Fund | Invest across all 3 segments |
| Flexi Cap Fund | No restriction, fund manager chooses freely |
- Other Specialized Funds
| Type | Description |
| Sectoral/Thematic Funds | Invest in specific sectors like IT, Pharma, ESG, etc. |
| Index Funds | Mirror a stock market index (like Nifty 50). Passive fund. |
| Fund of Funds (FoF) | Invest in other mutual funds. |
| Exchange-Traded Funds (ETFs) | Traded like a stock on exchange. |
