What are Mutual Funds: How to Invest in Mutual Funds, Types, Benefits & Returns

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Types of Mutual Fund	Sub-types of Mutual Fund	Definition of Each Sub-type
Equity Mutual Funds	Small-cap Funds	Investing in shares of companies with low market capitalisation (company ranking below 251 in market capitalisation).
Equity Mutual Funds	Mid-cap Funds	Investing in equity of companies with mid-level capitalisation (companies ranking between 101 and 251 in market capitalisation).
Equity Mutual Funds	Large-cap Funds	Investing in equity of companies with large capitalisation (companies ranking between 1 and 101 in market capitalisation).
Equity Mutual Funds	Multi-cap Funds	Investing in equity of all types of market capitalisation. The fund manager changes the allocation of funds depending on the market condition to reduce risk and maximise return.
Equity Mutual Funds	Thematic or Sector Fund	Investing in equity of companies in a specific sector or similar theme of business like IT, travel, FMCG.
Equity Mutual Funds	Index Fund	Investing in companies' equity following a benchmark index of a popular index like Sensex, Nifty 50, etc
Equity Mutual Funds	ELSS	It is Equity Linked Savings Scheme that provides tax benefits under Section 80C.
Debt Mutual Funds	Dynamic Bond Funds	Here the investment portfolio is modified based on fluctuation of interest rates in the market.
Debt Mutual Funds	Income Funds	Investment in securities for more than 5 years. It provides a stable return.
Debt Mutual Funds	Short-term Funds	Investment in securities for 1-3 years. It is better for risk-averse investors.
Debt Mutual Funds	Liquid Funds	Investment in assets and securities for 91 days in high-rated instruments for higher return and liquidity of the fund.
Debt Mutual Funds	Gilt Funds	Investment in high-rated Government securities with lower risk factors.
Debt Mutual Funds	Credit-opportunity Fund	Investment in low rated securities provides higher return and risk as well.
Debt Mutual Funds	Fixed-maturity Plan	Investment in closed-end fixed income securities like government bonds. It has a pre-defined lock-in period and should be invested in the fund offer period.
Hybrid Mutual Funds	Equity-oriented Fund	65% investment in equity and rest in fixed-income instruments.
Hybrid Mutual Funds	Debt-oriented Fund	65% investment in equity in fixed-income instruments and the rest in equity.
Hybrid Mutual Funds	Monthly Income Plan Fund	80% investment in debt instruments for steady return and 20% in equity.
Hybrid Mutual Funds	Arbitrage Fund	Maximise the return by buying securities in one market with a lower price and selling in another market at a higher price.

Types of Mutual Fund	Mutual funds	3yrs return / 5yrs return
Equity Funds	ICICI Prudential Technology Fund - Direct Plan-Growth	42% / 33.40%
Equity Funds	TATA Digital India Fund Direct Plan-Growth	41.46% / 34.07%
Equity Funds	Aditya Birla Sun Life Digital India Fund - Growth-Direct Plan	41.43% / 32.43%
Equity Funds	ICICI Prudential Technology Fund	40.81% / 32.36%
Equity Funds	Quant Infrastructure Fund - Direct Plan-Growth	40% / 23.47%
Debt Funds	ICICI Prudential Multicap Fund - Dividend	17.37% / 12.82%
Debt Funds	IDFC Government Securities Fund-Constant Maturity Plan-Growth-Direct	11.75% / 9.75%
Debt Funds	IDFC Government Securities Fund-Investment Plan-Growth-Direct Plan	11.65% / 8.86%
Debt Funds	ICICI Prudential BHARAT 22 FOF - Direct-Growth	11.62% / NA
Debt Funds	DSP Government Securities Fund - Direct Plan-Growth	11.47% / 8.55%
Hybrid Funds	Quant Absolute Fund - Direct Plan-Growth	31.36% / 19.92%
Hybrid Funds	ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund Direct Plan-Growth	28.07% / NA
Hybrid Funds	HDFC Retirement Savings Fund- Equity Plan -Direct Plan-Growth	25.41% / 18.20%
Hybrid Funds	ICICI Prudential Thematic Advantage Fund (FOF) - Direct Plan-Growth	25.08% / 17.96%
Hybrid Funds	BOI AXA Mid & Small Cap Equity & Debt Fund Regular Growth	23.96% / 16.03%

What Are Mutual Funds?

What Is the Meaning of a Mutual Fund?

How Do Mutual Funds Work?

Who Can Invest in Mutual Funds?

What Are the Types of Mutual Funds?

Sub-types of Various Mutual Funds

What Are the Features of Mutual Funds?

What Are Mutual Fund Returns?

How to Invest in Mutual Funds?

What Are the Different Risk Factors in Mutual Funds?

What Is the Investment Horizon for Mutual Funds?

What Are the Things to Consider While Investing in Mutual Funds?

Frequently Asked Questions

✓ How can I select a suitable mutual fund?

✓ How can I redeem my mutual fund's units?

✓ Which ones should I select for payment, SIP or a lump sum? Which one is better?

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