A mutual fund is an investment tool wherein the funds are collected from the pool of investors and is being invested in a various
a diversified portfolio which is overlooked by a professional mutual fund advisor, who invests your hard-earned money into
different various resources and provides you a specific rate of return on your investment.
Well, know we what is Mutual Fund, well lets jump into understanding what are the types of mutual funds scheme in India.
There are many (N) number of mutual funds in the market but all the mutual fund falls under one of this classification:
- Equity scheme
- Debt scheme
- Hybrid scheme
- Solution scheme
- Other schemes.
Now we let furthermore understand one by one what they all mean?
1. Equity scheme:
As the name itself indicates Equity is the scheme wherein all your funds are invested in the equity it may be in a company or either in Nifty or Sensex,
however, there is always a risk assigned to all kinds of investments but the risk is handled by an expert advisor how will handing
your funds to their fullest potential.
2. Debt Scheme:
Debt scheme as the funds which invest in fixed income instruments such as gold bonds, corporate bonds.
These provide low return compared to the equity as well as these are accepted by the investors because,
they not only provide a consistent return but also are not high volatility.
3. Hybrid scheme:
A hybrid scheme as the name itself indicates hybrid means the combination of multiple products in this case it will be the combination
of both Equity and Debt scheme, bonds as the investors deem necessary.
4. Solution scheme:
Solution schemes are the scheme which is designed to achieve a specific goal maybe for the sake of buying a car/house,
children’s education, etc. These schemes usually are perfectly goal-oriented and maybe even used for alternative
purposes as an medical emergency as well.
To sum up, in conclusion, What Are The Types Of Mutual Funds Scheme In India, in brief, there are not only these but much more different
forms of investment in mutual, but all perform under the above category, but these are the most preferred forms of a scheme to invest your hard-earned money.