Mutual Funds and Its Categories Have a look at the basic characteristics of all the mutual fund categories and schemes
INTRODUCTION
A mutual fund is an investment programme that pools the money of several investors who share a common financial goal.
Investor can invest in the mutual funds through SIP or Lumpsum.
It gives different types of investment options and style.
It is the simplest way to have a sound portfolio of investments as per your financial goals.
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How Mutual Funds Works ?
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Benefits Of Investing In Mutual Funds:
Safe and Secure
Diversification in Portfolio
Flexible and Innovative Plans for Investors
Liquidity
Transparency
Long-Term perspective
Lower entry level
Well regulated structure
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Mutual Funds Categories Categories
Hybrid Funds
Balanced Fund
Debt Funds
Equity Funds
Large Cap Fund
ELSS Fund Small Cap Fund
Diversified Fund
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Mid Cap Fund
Debt Long Term
Liquid Fund
Equity Funds The investment objective of equity funds is to provide long term benefits to an individual. They are also known as stock funds and majorly invest in stocks of the companies. ➢
Large Cap Funds ➢
Invest in big companies characterized by their market capitalization
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Safe for the investors as they are well established leaders in their respective field
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Provide consistency and financial stability
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Large cap mutual funds are less volatile to market risks ➢
Top Performing Schemes : ▪
Kotak Select Focus Fund G
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SBI Blue Chip Fund G
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Birla Sunlife Frontline Equity Fund G
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ICICI Pru Focused Bluechip Equity Fund G
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Diversified Equity Funds ➢
Contains a wide area of securities
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Diversified mutual funds are less risky as portfolio is spread across different sectors
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Large cap mutual funds are less volatile to market risks ➢
Top Performing Schemes : ▪
Birla Sunlife Equity Fund G
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Tata equity P/E Fund G
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Sundaram Rural India Fund G
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DSP Blackrock Opportunities fund G
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UTI MNC Fund G
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Continue… ➢
ELSS / Tax Saving Funds ➢
It is an open ended equity mutual funds
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ELSS funds have the shortest lock in period
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Provides dual advantage of tax saving and wealth creation
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Investor can expect returns upto 12% as compare to other products available under section 80C ➢
Top Performing Schemes : ▪
DSP Br Tax Saver Fund G
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Kotak Tax Saver Fund G
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Reliance Tax Saver Fund G
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Tata India Tax Saving Fund G
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Axis Long term Equity Fund G
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Continue… ➢
Small Cap Funds ➢
They primarily invest in small companies
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Risk under small cap mutual funds are high as compare to others
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Being an investor you can start your investment either through SIP or Lumpsum ➢
Top Performing Schemes : ▪
DSP Blackrock Micro Cap Fund G
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Reliance small Cap Fund G
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Franklin India Smaller Companies Fund G
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Canara Robeco Emerging Equities Fund G
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Kotak Emerging Equities Scheme G
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Continue… ➢
Mid Cap Funds ➢
They primarily invest in medium sized companies
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Investors with high risk bearing capacity can start investment
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Mid cap funds provides consistent growth to an investor with high returns ➢
Top Performing Schemes : ▪
Kotak Mid cap Fund G
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Sundaram Select Mid cap Fund
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HDFC Mid cap opportunities fund G
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Birla Sunlife Mid cap fund G
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Franklin India Prima Fund G
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Hybrid Funds In this category investor enjoy combination of stocks and bonds. These funds are less volatile due to its mixed portfolio. Hybrid funds are suitable for new stock investors. ➢
Balanced Funds ➢
Provides dual benefits of equities and debts.
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Balanced funds helps its investors to enjoy high capital appreciation, regular income and security of investment.
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Balanced funds weigh 60% equity and 40% fixed income ➢
Top Performing Schemes : ▪
DSP Blackrock Balanced Fund G
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HDFC Balanced Fund G
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ICICI Prudential Balanced Fund G
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SBI Magnum Balanced Fund G
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Reliance Regular Savings Fund – Balanced Option G
Debt Funds These funds invest in various fixed income sectors like government bonds, commercial papers, bank certificates of deposits etc. ➢
Liquid Funds ➢
These funds are similar to cash in fund
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Helps you to achieve short term investment goals with high returns
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Liquid funds are less volatile in nature and one can redeem funds within 24 hours of purchase* ➢
Top Performing Schemes : ▪
Reliance money manager fund – Regular Plan G
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ICICI Prudential Money Market Fund G
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Tata Money Market Fund G
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Kotak Liquid – Plan A G
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Sundaram Money Fund – Regular Plan G
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Debt Long Term Funds ➢
Investors invests with a long term perspective of 3-4 years
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Long term debt mutual funds provides regular income to investors
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They become liquid in nature after period of one year ➢
Top Performing Schemes : ▪
ICICI Prudential Long Term Fund – Regular Plan G
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SBI Dynamic Bond Fund G
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HDFC High Interest Fund – Dynamic Plan G
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Reliance Dynamic Bond Fund G
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