As per the needs of the mutual fund the asset management companies have customised their policy. The mutual are categories to thirty different funds which satisfies different needs of the customers.
Equity Mutual Funds
Equity mutual funds invest in capital of a companies which in turn receives profit on the investment made. The investment holds a medium amount of risk and probability of huge returns also.
Debt Mutual Funds
Debt mutual funds are loans given to government and other private organisations. They come with a fixed amount of return. In this type of mutual fund, the returns are fixed hence the investor doesn’t have to worry about the loss of amount invested. These funds only have to risk of volatility in the interest rate but making the investment amount secured.
Hybrid Mutual Funds
Hybrid mutual funds are funds that consist of both equity and debt funds. They concentrate on the investors who have unique needs towards investments. These investments under this fund consist of both equity and debt. The ratio depends on the needs of the investors. The risk of the fund depends upon the ratio chosen by the investor before choosing the fund.
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