In India, mutual funds companies have the second largest corpus of investments after life insurance companies. The options for investments are many with mutual funds, though the first thing anyone new investments thinks is equity mutual funds. But mutual funds can be made of any asset class.
Mutual fund type based on asset class
Mutual funds can be of different types based on what they are composed of. They can be
Equity based
Debt based
Money market based
Balanced
An equity fund invests most of its corpus in equity shares. The type of companies to invest in depends on the fund philosophy. A debt fund invests in bonds, deposits and government securities. The money market fund invests in the money market. The balanced fund mixes equity and debt is proportions as determined by the fund philosophy.
Current income
The quantum of current income from an equity mutual fund depends on its fund payout choice. The choices generally are:
Investing in equity mutual funds
In India, mutual funds companies have the second largest corpus of investments after life insurance companies. The options for investments are many with mutual funds, though the first thing anyone new investments thinks is equity mutual funds. But mutual funds can be made of any asset class.
Mutual fund type based on asset class
Mutual funds can be of different types based on what they are composed of. They can be
Equity based
Debt based
Money market based
Balanced
An equity fund invests most of its corpus in equity shares. The type of companies to invest in depends on the fund philosophy. A debt fund invests in bonds, deposits and government securities. The money market fund invests in the money market. The balanced fund mixes equity and debt is proportions as determined by the fund philosophy.
Current income
The quantum of current income from an equity mutual fund depends on its fund payout choice. The choices generally are:
Dividend payout option
Dividend reinvestment option
Growth Option