- What is Mutual Fund ? Different types of Mutual Fund ?
Mutual Fund is an investment where money from many investors is pooled together and invested in shares, bonds, or other assets by a professional fund manager.
👉 Simple meaning: Experts invest your money for you.
- Types of Mutual Funds
2. Based on Asset Class
|
Type |
Invests In |
Risk/Return |
|---|---|---|
|
Equity Funds |
Shares/stocks |
High risk, high return |
|
Debt Funds |
Bonds, FDs, government securities |
Low risk, moderate return |
|
Hybrid Funds |
Mix of equity + debt |
Medium risk, balanced return |
|
Gold Funds |
Gold or gold ETFs |
Medium risk, hedge against inflation |
|
Money Market / Liquid Funds |
Short-term debt instruments |
Very low risk, very liquid |
2. Based on Investment Objective
|
Type |
Purpose |
|---|---|
|
Growth Funds |
Long-term wealth creation |
|
Income / Dividend Funds |
Regular income via dividends |
|
Index Funds |
Track a stock market index |
|
Sectoral / Thematic Funds |
Invest in specific sectors like IT, pharma, banking |
3. Based on Management Style
|
Type |
Description |
|---|---|
|
Active Funds |
Fund manager actively chooses investments |
|
Passive / Index Funds |
Follows a market index automatically |
- Key Advantages of Mutual Funds
- Professional management
- Diversification (reduces risk)
- Affordable (start with small amounts via SIP)
- Liquid and transparent
In short:
Mutual funds = easy, managed way to grow money with multiple types to suit your goals.
For more details , you may feel free to contact Pentad Securities Private Limited or call us @808 907 4445
To open account –
👉Click on https://kyc.pentadsecurities.com/pentad/individual_new
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