Mutual Fund Categories | Types of Mutual Funds- Equity, Debt & Hybrid | A Beginner's Guide - MF03

Support Desk :

Diaz E Portal (Our Services):

Financial Calculators:

Social Medias:-

- Team Diaz

Debt Funds :

1. Liquid Funds: These funds invest in very short-term debt instruments with a maturity period of up to 91 days. They offer high liquidity and are considered relatively low-risk investments.
2. Ultra Short Duration Funds: These funds invest in debt instruments with a slightly longer maturity period than liquid funds, usually between 3 months to 6 months. They aim to provide slightly higher returns while maintaining liquidity.
3. Short Duration Funds: Short duration funds invest in debt instruments with a maturity period of 1 to 3 years. They offer moderate returns with relatively lower interest rate risk.
4. Medium Duration Funds: These funds invest in debt instruments with a maturity period between 3 to 4 years. They aim to provide a balance between returns and interest rate risk.
5. Long Duration Funds: Long duration funds invest in debt instruments with longer maturity periods, usually over 7 years. These funds are more susceptible to interest rate fluctuations and are suitable for investors with a long-term investment horizon.

Equity Funds :

1. Large Cap Funds: These funds primarily invest in large-cap companies with a significant market capitalization. They aim to provide stable returns by investing in well-established companies with a proven track record.
2. Mid Cap Funds: Mid cap funds invest in stocks of medium-sized companies that have the potential for growth. These funds carry higher risk compared to large cap funds but can generate higher returns over the long term.
3. Small Cap Funds: Small cap funds invest in stocks of small-sized companies that have the potential for significant growth. These funds are considered high risk, but they can offer substantial returns for investors with a long-term investment horizon.
4. Multi-Cap Funds: Multi-cap funds have the flexibility to invest across companies of different market capitalizations, including large-cap, mid-cap, and small-cap stocks. The fund manager can adjust the portfolio allocation based on market conditions and investment opportunities.
5. Sector Funds: Sector funds focus on specific sectors or industries such as banking, healthcare, technology, energy, etc. These funds offer exposure to a particular sector's growth potential but come with higher risk concentration.
6. Index Funds: Index funds aim to replicate the performance of a specific market index, such as the Nifty 50 or Sensex. They invest in the same stocks in the same proportion as the index, offering broad market exposure and relatively lower expense ratios.

Hybrid Funds :

1. Aggressive Hybrid Funds: Also known as balanced advantage funds, these funds maintain a dynamic allocation between equity and debt instruments based on market conditions. They have the flexibility to increase equity exposure during bullish market phases and reduce it during bearish phases.
2. Conservative Hybrid Funds: Conservative hybrid funds, also called balanced funds, have a higher allocation towards debt instruments compared to equity. They aim to provide relatively stable returns by investing predominantly in debt securities with a smaller allocation to equities.
3. Balanced Hybrid Funds: Balanced hybrid funds maintain a balanced allocation between equity and debt instruments, typically around 50% each. They aim to provide a combination of capital appreciation and income generation by investing in a diversified portfolio.
4. Dynamic Asset Allocation Funds: These funds dynamically allocate assets between equity and debt based on market conditions and valuation indicators. The fund manager adjusts the allocation to take advantage of market opportunities.
5. Equity Savings Funds: Equity savings funds invest in a mix of equity, arbitrage, and debt instruments. They aim to provide a balance between capital appreciation and income generation while minimizing downside risk through arbitrage opportunities.

[ബിനുസുരേന്ദ്രൻ]

Halo sir. Motilal Oswal Nefty Microcap 250 index fund ഇതിനെ കുറിച്ച് ഒരു വീഡിയോ ചെയ്യാമോ ?