Understand the different types of funds available in the market and how they can help you achieve your financial goals.
Investment funds are pooled types of investments where money from many investors is collected to purchase securities like stocks, bonds, or other assets. These funds are managed by professional fund managers. The most common type of investment fund in India is the mutual fund.
When people talk about mutual funds mutual funds (often repeated for emphasis in search queries), they are referring to a professionally managed investment fund that pools money from many investors to purchase securities.Funds mutual funds offer small or individual investors access to professionally managed portfolios of equities, bonds, and other securities.
Invest primarily in stocks. High risk, high return. Best for long-term goals.
Invest in fixed-income securities like bonds. Lower risk, stable returns.
Mix of equity and debt. Balanced risk and return profile.
Active Funds: A fund manager actively buys and sells stocks to try and beat the market index. These typically have higher expense ratios.
Passive Funds (Index Funds): These funds simply copy a market index (like Nifty 50 or Sensex). They don't try to beat better than the market but mirror its performance. They have very low fees.
Want to see how your mutual fund investments can grow over time? Use our specialized calculators.