What are the different type of mutual fund and its benefits

Firstly it is important to understand the level of risk you may able to take to invest in mutual fund, because in mutual fund the higher the potential of fund the higher the risk of potential loss, but there are funds which are less risky than others, since risk is attached to mutual funds there are no funds available which have no risk, there are some list with top 10 mutual fund in India,


If we talk about basics we have three major categories of mutual funds:

  • Direct investment in stocks that is known as equity funds, 
  • Investment in bonds are known as fixed income fund,
  • Then there is balanced funds n which both bonds and stock investment is included,
  • Then we have risk free rate those are known as money market funds.

So these are the major categories in which one may invest but these all categories have different divisions under them, so some of more flavors of funds are as follows first we cover the safer funds and then we take a ride towards:


  1. Money market fund: these are the safest funds we have, which includes short term depth investments. It would not give substantial returns but it will not be that risky and hardly go in negatives.
  2. Income funds: these funds are the investments in government primarily and then go to high quality corporate dept, people interested in tax may avoid these funds and these funds grab attention of mostly retirees as they provide regular income.
  3. Bond funds: these mutual funds give higher returns then certificate of deposit as well as money market investments.
  4. Balanced funds: it provides balanced mixture of things like income, safety and capital. It invest in both fixed income and equity at the same time with some percentage in both and it is been managed by the fund manager who takes care of this balance.
  5. Equity funds: it invests basically in stocks is known as equity funds this focus for long term investments.
  6. International/global funds: it has the funds associated outside your home funds and that is why known as international and global funds, global economy is more interrelated these days but still sometime funds outside the home town has bigger values.
  7. Specialty funds: t has sector funds which basically hit on to the sector based funds such as technology, health, education, etc. the possibility of gain are much larger, it also has regional funds that includes which focus on broader regions, than it has ethical funds which are socially responsible funds that means that invest in those funds that totally based on social growth such as solar plants and recycling.

These are the major mutual fund categories on which it is based and on the basis of this categorization there are number of other funds set in top mutual fund category, these are available for investment if you are the one having interest in mutual funds and want to know more about funds who are beneficial for you than do check on to www.rupeeyog.com .