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How to Start Trading Search on Stock Companies ELSS Scheme Dematerialsation Women in Stockmarket History of stockmarket Investment Opportunities for NRI Currencies Delivery instruction slips Demat securities Derivatives Trends in stock market Online trading in Stock-Market Depository BSE-and-NSE Upper circuit value Unpredictable stock market Tips for investing in stock market Attraction of Indian stock market Stock Brokers Stock market the mind game Stock market information Stock exchange and you scenario of indian stock market Corporate Benefits Delivery Instruction Slips Demat Securities Nomination Pledging Rematerialisation Trading and Settlement Transaction Statement Depository and Particpants DP and Stock Broker DP Account Rights and Obligations Derivatives Options Risk Management Settlement Trading Advantages of Trading Stock Glossary Bonus Shares Dabba Trading Global Depository Receiptst Net Market Value Splitting and Consolidation Trade for Trade Mutual Funds How to Make Money From Your Fund Features of Mutual Funds Benefits of Investing Pros and Cons Investment Objective Types of Mutual Funds Primary Market Book Building Investors Guide for IPOs Issue Process Listing Stock Brokers Rules and Regulations 
 
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Types of Mutual funds (By Investment objective)The fund normally earns income from the profit which it makes by investing in securities. It also earns dividends on those securities. The investors are normally given the option of earning some of the earnings by way of dividends by Mutual Fund companies. Build a reputable Asset Management platform by taking into account previous investment performances for comparison. Growth optionAs said earlier, a fund earns income from the profit it makes from investing in securities and also in the form of dividends. In growth option, the investors leave the earned profits in the mutual fund and allow it to get invested for earning more returns. A diversified portfolio of stocks normally has capital appreciation as its primary goal. They invest in companies that reinvest their earnings into expansion, acquisitions, and research and development. Investors generally get higher potential growth in these types of funds but there is usually higher risk associated with them.
Equity Fund It is a mutual fund that invests in a broad based and well-diversified group of stocks. The invested funds will either be in cash or stock. Mostly an equity fund invests its assets in stocks of companies and earns returns in the form of capital gains (the difference between buying and selling stocks) as well as dividends earned from these investments. This type of fund is riskier as compared to balanced funds and debt funds. Debt Fund/Income Fund It is also called bond fund as this fund normally invests in mainly government securities and corporate bonds which bear interest. It may invest in short-term or long-term bonds and other securitized products, money market instruments or floating rate debt. It earns returns from interest income on its investments and profits on trading securities. This fund is the least risky of all the funds. In other words, the main investing objectives of a debt fund will usually be preservation of capital and generation of income.
Hybrid Funds This fund type invests in equity shares of companies as well as debt securities. It earns income in the form of dividends and interest as well as buying and selling securities. This is riskier than debt fund and less risky than equity funds Some of distinctive characteristics of mutual funds include the following: |
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