Does investing in Mutual Funds mean investing in equities?
No, this is not necessary. Mutual funds can be divided into various types depending on asset classes. They can also invest in debt instruments such as bonds, debentures, commercial paper and government securities apart from equity.
Every mutual fund scheme is bound by the investment objectives outlined by it in its prospectus. The investment objectives specify the class of securities a mutual fund can invest in. Based on the investment objective, the following types of mutual funds currently operate in the country.
Growth Schemes
Income Schemes
Balanced Schemes
Money Market Schemes
This blog is for the investors who have not yet started investing in mutual funds, but willing to explore the opportunity and also for those who want to clear their basics for what is mutual fund and how best it can serve as an investment tool.
Complete Guide of Mutual Funds
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