Understanding Different Categories of Mutual Funds

Mutual funds are not limited to equity investments. Different categories of schemes are available depending on the underlying assets and investment objectives.

Some common categories include:

• Equity Funds – Primarily invest in equity and equity-related securities.
• Debt Funds – Primarily invest in fixed-income securities and debt instruments.
• Hybrid Funds – Invest in a combination of equity and debt instruments.
• Liquid Funds – Invest primarily in short-term money-market instruments.
• Index Funds – Aim to track the performance of a specified market index.

Each category carries different levels and types of risk.

Before investing, investors should review the scheme objective, Riskometer, Scheme Information Document (SID), Key Information Memorandum (KIM) and other relevant documents.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.