Types Of Mutual Funds
Life Insurance Corporation of India (LIC) founded in 1956 is the largest life insurance company in India and also the country's largest investor; it is fully owned by the Government of India. It also funds close to 24.6% of the Indian Government's expenses. It has assets estimated of 5 Trillion Rupees.
Equity Funds
An equity fund is a mutual fund scheme that invests predominantly in equity stocks. In the Indian context, as per current SEBI Mutual Fund Regulations, an equity mutual fund scheme must invest at least 65% of the scheme’s assets in equities and equity related instruments.
Debt Funds
Debt fund is a mutual fund scheme that invests in fixed income instruments, such as Corporate and Government Bonds, corporate debt securities, and money market instruments etc. that offer capital appreciation.
Money Market Funds
A money market fund is a type of mutual fund that has relatively low risks compared to other mutual funds and most other investments and historically has had lower returns.
Income Fund
An income fund is a mutual fund that focuses on providing investors with a consistent income stream from a portfolio of investments. There are several types of income funds, each with a different level of risk and return, depending in what they invest.
International Funds
International mutual funds work like regular mutual funds. The investments are made in the Indian rupee. A fund manager invests your money in foreign companies listed on foreign exchanges.
Bond Funds
A bond mutual fund invests in debt instruments issued by governments and/or corporations. Most of these funds are designed to provide interest income for shareholders in the form of dividends that represent the total interest payments made by all bonds in the fund’s portfolio.
Dividend Fund
Dividend mutual funds are mutual funds that invest in stocks that pay dividends. You can then reinvest the dividends into more shares of the funds, or you can use the money as an income stream.
Balanced Funds
A bond mutual fund invests in debt instruments issued by governments and/or corporations. Most of these funds are designed to provide interest income for shareholders in the form of dividends that represent the total interest payments made by all bonds in the fund’s portfolio.