This presentation would help investors and potential investors to know about different types of Mutual Funds in India. It would give them the idea on which mutual fund fits their need based. For more information, please feel free to reach out to us. www.ithought.co.in
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2. Everybody wants to be rich with as little investment possible!
Wonder how to convert a moderate
investment into a substantial sum over a
period of time?
4. •Mutual funds can be used for your IRA and other retirement plans.
• Mutual funds can be borrowed against in case of an emergency.
•Mutual funds involve no personal liability beyond the investment risk in the
portfolio.
•Mutual funds gives you tax benefits
Key benefits of Mutual Funds
5. Equity / Growth Funds
Equity funds are those that invest in stocks and are also called stock funds. Its investment
objective is long term capital growth. These funds invest minimum 65% of its corpus in equity
and equity related securities. Specific equity funds may focus on a certain sector of the market
or may be geared toward a certain level of risk.These types of funds are suitable for investors
who look for higher return, but at the same time are ready to take risk.
Debt Funds
Debt Funds are mutual funds that invest in fixed income securities like bonds and bills. Gilt
fund, monthly income plans (MIPs), short term plans (STPs), liquid funds, and fixed maturity
plans (FMPs) are some of the investment options in debt funds. Apart from these categories,
debt funds include various funds investing in short term, medium term and long term bonds.
Different types of Mutual Funds
6. Balanced Funds
These funds invest both in equities and fixed income instruments and its investment objective is
to provide a balanced mixture of safety, income and capital appreciation. The amounts that such
a mutual fund invests into each asset class usually must remain within a set minimum and
maximum.
Index Fund
This type of mutual fund will replicate the portfolio of a specific market index such as BSE
Sensex or the S&P CNX Nifty. An index mutual fund is said to provide broad market exposure,
low operating expenses and low portfolio turnover.
Gilt Funds
Gilt Funds exclusively invest only in government bonds. These funds don’t carry credit risk ,
however, they carry interest rate risks.
Different types of Mutual Funds
7. Liquid Funds
These funds invest in the money market instruments such as treasury bills and commercial papers
for a period of less than 90 days. This short term fund is suitable for investors looking for
moderate returns on their surplus funds.
Global Funds
As the name suggests, it is compulsory to invest the major part of their corpus in overseas
market. They have a lot of political risks attached with the country you have invested in.
These funds provide more global opportunities for diversification and act as a hedge against
inflation and currency risks.
Funds of Funds
It is an investment strategy of holding portfolio of other investment funds instead of investing in
stocks or bonds.
Different types of Mutual Funds