Significant Types Of Mutual Funds in India...

-

        There are various types of mutual fund schemes in India related which helps individual to invest in stock market according to their risk tolerance and risk appetite. Individual can consider schemes by choosing significant amount to invest in per month. This kind of investing known as SIP (Systematic Investing Plan). There is new arrival of schemes mutual fund market. keep this blog relative to the topic and let's get started.

1. Hybrid mutual fund: -

        This fund combines the benefits of Debt and Equity funds. This kind of funds allocate it's all corpus in debt and equity assets. To balance the risk tolerance.

2. Flexi cap fund: -

        Flexi cap fund invest Primarily in equities like large cap fund, mid cap fund and small cap fund having no restriction on percentage of investment.

3. Quantitative fund: -

        Quant funds use mathematical models, algorithms, and statistical techniques to select investments, manage portfolios, and execute trades. This kind of funds doesn't rely on human judgement and emotion about trades instead they use data driven strategies. Which helps to give consistent returns. 

4. ELSS (Equity linked saving scheme) fund: -

        ELSS is a type of mutual fund in India that primarily invests in equities (stocks) and offers tax benefits under Section 80C of the Income Tax Act. ELSS funds have a mandatory lock-in period of 3 years, making them a popular choice for tax-saving investments.

5. Gilt Fund: -

         Gilt funds invest a minimum of 80% of their corpus in Government securities, hence considered one of the safest debt investments, but the remaining 20% can go anywhere. There is another type of Gilt Funds that is obliged to maintain a Macaulay duration of 10 years while keeping a minimum of 80% of their corpus in government securities. 

6. Thematic fund: -

        A Thematic Fund is a type of mutual fund that invests in companies aligned with a specific theme or trend. Unlike sector funds, which focus on a single industry, thematic funds can span multiple sectors or industries, as long as they fit within the chosen theme. Themes could range from technology, healthcare, and infrastructure to ESG (Environmental, Social, and Governance) or emerging trends like electric vehicles and AI.

7. Sector fund: -

        Sector Funds focus on specific industries or sectors, allowing investors to target areas they believe will perform well.

    Difference in sector and theme fund: -

Sector funds choose to invest in specific sector like IT, Automobile, Health sector likewise.

Thematic funds based upon trend or theme like ESG, AI, Technology ETC which covers broader theme

8. Funds of fund: -

        Funds of fund type of mutual fund invest in other mutual funds instead of investing in particular stock, bond and securities. Portfolio of this fund consisting of units from various funds which could be domestic or international, passive or active.

This are the generational and new mutual funds analyze each and every component of mutual fund to invest wisely. In next blog we'll discuss about How to choose Mutual fund wisely? Till then "Control your finance today, Build your wealth Tomorrow."



                                                                                                                                

Popular posts from this blog

Trust worthy Indicators of Stock Market

-
1. Morningstar Rating : Morningstar provides ratings that indicate a stock’s risk level and suitability for different types of investors. 2. Analyst Ratings : Professional analysts typically offer ratings on stocks they cover that indicate a buy, hold, or sell recommendation. 3. Earnings Reports : Public companies must file reports on their financial performance that can be used to assess the sustainability of their profits. 4. Abnormal Trading Activity : Long- or short-term unusual trading activity can be an indicator of insider knowledge. 5. Analyst Conferences and Press Releases : Publicly traded companies convene analyst conferences to discuss their financial performance and often issue press releases to update investors. 6. Management’s Track Record : Experienced managers with a successful track record are generally more trustworthy than those who are new to their positions.
Read more

Blockchain...

-
 Blockchain!! Blockchain!! We often here about Bitcoin in our daily life. but do we know enough about its foundation, that on which technology it's based on. that's why Todays, topic is about blockchain. The unsung hero behind every secure and legitimate transaction of Bitcoin and like every cryptocurrency. Before diving into the core part of the Blog, let's see why we are in need of blockchain. so, take an example of our current financial system. suppose A paid $1000 to B then how this transaction reflects in baking software. A's account gets debited with $1000 whereas B's Account get credited with $1000, isn't it?? but here the issue is all the control of our transaction is in the hands of banks. They may put different amount instead of $1000. but they didn't because they are under scrutiny of central bank and central bank is under observation of finance ministry. it only means our whole financial system running on trust. hence our system is Centralized....
Read more