Guide to Understand Various Types of Mutual Funds
Are you considering investing in mutual funds? Then you must know about the different types of mutual funds and their features and benefits. Mutual funds can be classified based on different characteristics. If you are a novice investor, you have come to the right place. In this blog, we discuss the different types of mutual funds based on different factors.
Classification of mutual funds based on asset class
Debt Funds
As the name suggests, debt funds primarily invest in fixed-income securities like treasury bills, government bonds, gild funds, etc. Since the investments come with a fixed interest rate, and maturity period, it can be an excellent investment instrument for risk-averse and passive investors looking for regular income with minimal risks.
Equity Funds
E...