Mutual Funds Invests
For investing in a Mutual Fund, you need to understand the various types of Mutual Funds that are available to you.
- Equity Funds are invested only in the stocks of domestic companies listed on stock exchanges. They fall into the category of high-risk funds.
- Money Market Mutual Funds are mainly meant for investors who are looking for easy liquidity and returns in the short term. These funds are invested in money market instruments like Treasury bills (T-Bills), Repurchase Agreements (Repo), Commercial Papers (CPs) and government securities.
- Fixed Income Mutual Funds are considered an alternative to Fixed Deposits. They are invested in fixed-income securities. Debt funds are the fixed income mutual funds carrying a low risk.
- Balanced Mutual Funds are invested in both fixed-income securities (debt) and stocks (equities). So they offer a balanced portfolio to investors.