Money matter series, we have discussed so far about
what is MUTUAL FUND
let’s take it further and understand
what are its different types
that AMC offers
basically, we can divide them into 3 categories
Equity Mutual Fund
Debt Mutual Fund
Hybrid Mutual Fund
Equity Mutual Fund: It is kind of mutual funds in which AMC lists investor’s money into stock market .That clearly states in this kind of investment Return Rate and Risk Rate are high.
Further, it also depends on the stock market
what kind of company you are investing in, that is big, small
Debt Mutual Fund: It is that type of mutual funds in which investor puts money in Debt Instruments. For example Bonds, Debentures, Certificate of deposit.
These are categories of low risk and low-interest rate.
Hybrid Mutual Fund: As the name suggests its meaning. It is a mixture of equity and debt mutual funds. Some people like to invest in debt mutual fund along with equity so it is basically designed for those.
these categories are further divided into more subcategories especially Equity Mutual Funds. Which we will discuss in another article. As the concept of a mutual fund is very complicated to understand. We are trying our best to make it simple and more understandable.