1. Equity Funds (As Per Asset Class)

These Are Funds That Invest In The Equity Stocks Of Businesses. These Are Cautious, High-Risk Funds That Also Tend To Provide High Returns. Equity Funds Can Cover Fields Like Infrastructure, Fast Moving Consumer Goods, And Banking, To Name A Few. That Fund Is An Equity Fund Or A Mutual Fund That Invests Primarily In Stocks. 

The Size Of An Equity Fund Is Determined By The Capitalization Of The Market, Including The Investment Style, Which Is Also Used To Classify Equity Mutual Funds.

2. Debt Fund

A Debt Fund Is A Type Of Common Fund Plan That Invests In Fixed-Income Securities, Such As Corporate And Government Bonds, Corporate Debt Securities, Money Market Instruments, Etc., That Have The Potential To Increase In Value. In Addition To Debt Funds, There Are Income Funds And Bond Funds. “Compared To Equity Funds, Debt Funds Are Less Volatile And Risky. Debt Mutual Funds Might Be A Better Option For Obtaining A Higher Return If You Have Been Saving In Traditional Fixed-Income Products Like Term Deposits In Various Ways And The Fund Assists You In Searching For Stable Returns With Low Volatility. Debt Fund Investments Are Made In A Variety Of Debt Instruments With A Range Of Maturities. That’s Where The Average Maturity Comes In. As The Name Suggests, It Basically Indicates The Fund Has An Average Maturity Of All The Securities In A Portfolio, Giving You The Freedom To Compare.

These Funds Do Not Remove Tax At Source, So If The Amount From The Investment Is More Than Rs. 10,000, Then The Investor Is Responsible For Paying The Tax On It Himself.

3. Money Market Funds:

These Are Funds That Capitalise Liquid Instruments, E.G., T-Bills, Cps, Etc. They Are Measured As Safe Investments For Those Looking To Safely Invest In Surplus Funds For Instant But Reasonable Returns. Money Markets Are Also Referred To As Cash Markets And Come With Risks In Terms Of Interest Rate Risk, Fund Reinvestment Risk, And Credit Risk In Different Ways.

Due To The Speedy Repayment Of These Loans, Money Market Funds Are Regarded As “Safe” Investments. N The Basis Of Risk, They’re Less Risky Than Investing In Shares, But That Fund Is Riskier Than Settling Your Money In A Savings Account.

4. Balanced Or Hybrid Funds:

A Hybrid Or Balanced Mutual Fund Is A Fund Scheme That Capitalizes On Both Equity And Debt. Each Balanced Fund Has A Mixture Of Equity And Debt Instruments Targeted At Specific Kinds Of Investors To Achieve Their Financial Goals. Hybrid Fund Returns Are Known As Diversified Mutual Fund Returns. In Some Ways, Equity Is Greater Than Debt, But Not In Others.

The Franklin India Balanced Fund, A Debt Fund With A 65% To 80% Equity Component And A 20% To 35% Debt Market Component, Might Be Regarded As A Hybrid Fund. The Debt Markets Provide A Lower Level Of Risk Than The Equity Markets, Which Is The Reason.

1. Growth Liquid Funds: Funds (Investment Objective)

Under The Fund, Money Is Invested Mainly In Equity Stocks With The Purpose Of Raising Capital. They Are Measured To Be Risky Funds, Making Them Ideal For Investors With A Long-Term Investment Timeline. Since They Are Risky Funds, They Are Also Perfect For Those Who Are Looking For Higher Returns On Their Investments To Achieve Their Goals.

An Increase Fund Is A Diverse Portfolio Of Stocks That Has Capital Appreciation As Its Primary Objective And Pays Little Or No Dividends. The Portfolio Mostly Involves Companies With A High Return On Investment That Can Reinvest Their Earnings Into Growth, Acquisitions, Or Research And Development.

2. Income Funds

Income Funds Are Common Funds Or ETFS That Manage Current Income. The Fund Is Paying Interest Or Dividends On Dividend-Paying Investments. Income Funds May Invest In Bonds Or Other Income Securities. Under These Funds, Money Is Invested Mainly In Fixed-Income Instruments, E.G., Bonds, Debentures, Etc., With The Goal Of Providing Capital Protection And Regular Income To Investors.

3. Liquid Funds:

Liquid Funds Are A Type Of Debt Fund That Mainly Invests In High-Quality Fixed-Income Instruments That Are Settled Within 91 Days. The Asset Distribution Of Liquid Funds Is Made Towards Certificates Of Deposit, Treasury Bills, And Commercial Papers. The Fund’s Constituent Parts Are Very Liquid, And Their Value Is Very Steady. In Order For Investors To Get Their Money From A Sale The Following Business Day.

They Are Measured High On Risk, But The Fund Also Offers High Returns If It Performs Well In The Market.

4. Capital Protection Funds:

A Capital Protection Fund Is Also Referred To As A Closed-End Hybrid Fund. This Fund’s Main Objective Is To Protect An Investor’s Capital During Market Downturns. Concurrently, It Provides Them With A Choice For Raising Capital By Contributing To The Upturn Of The Stock Market. These Funds Offer Limited Upside During Market Upturns But Offer Greater Downside Risk Protection During Market Downturns. They Are Appropriate For Established Investors With A Low Appetite For Risk. The Fund’s Main Objective Is To Protect An Investor’s Capital During Market Downturns. Concurrently, It Provides Them With A Choice For Raising Capital By Contributing To The Upturn Of The Stock Market.

5. Fixed Maturity Funds:

A Fixed Maturity Plan Is A Debt-Based Mutual Fund That Is Closed-Ended In Nature. Meaning That You Invest In A Debt Mutual Fund With A Fixed Term. This Fund Invests Mainly In Fixed-Income Instruments Whose Development Period Is In Sync With The End Date Of The Fund.

FMPS Are Ideal For Investors Whose Primary Returns Are Higher Than Those Of A Traditional FD, But The Fund Can Tolerate Typical NAV Fluctuations.

The Applicable Tax Is 10% Without Indexation And 20% With Indexation, And The Fund Is Valid For One Year.

6. Pension Funds:

Pension Funds Are Common Funds That Are Capitalized With A Really Long-Term Goal In Mind. They Are Mainly Meant To Deliver Regular Returns Around The Time That The Investor Is Ready To Give Up Work. The Investments In Such A Fund May Be Divided Between Equities And Debt Markets, Where Equities Act As The Risky Part Of The Speculation As Long As They Provide A Higher Return, And Debt Markets Balance The Risk And Provide Lower Returns. The Returns From These Funds Can Be Taken As Lump Sums, As A Pension, Or A Mixture Of The Two.

** Disclaimer: “Mutual Funds are Subject to Market Risk. Read all Scheme-Related Documents Carefully.”**