How are Mutual Funds categorised?

How are Mutual Funds categorised?

Mutual funds are categorised based on asset class, investment goals, structure, risk, and specialisation:

·       Asset Class: Includes Equity Funds (stocks), Debt Funds (bonds), Money Market Funds (low-risk securities), and Hybrid Funds (mix of stocks and bonds).

·       Investment Goals: Cover Growth Funds (long-term capital appreciation), Income Funds (regular income), Liquid Funds (short-term cash management), Tax-Saving Funds, and more.

·       Structure: Open-Ended Funds (buy/sell anytime), Closed-Ended Funds (fixed units), and Interval Funds (buy/sell at intervals).

·       Risk: Ranges from Very Low-Risk Funds to High-Risk Funds, offering stability to aggressive growth potential.

·       Specialisation: Includes Sector Funds, Index Funds, Real Estate Funds, and Exchange-Traded Funds (ETFs), among others.

These categories help investors find mutual funds that suit their financial goals, risk tolerance, and preferences.

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