What are the Categories and Types of Mutual funds? 

Investments today do not just draw the line at houses, gold, or locking in your sum of money for a fixed tenure - the horizons have been broadened. Mutual funds are investment tools that are part of those broadened horizons. You may ask why, well - firstly, they are known to be one of the most flexible investment instruments, and secondly, you have a lot of choices. In this article, we are going to look at what kind of choices you have through mutual funds by understanding the different kinds of mutual funds in India. So, buckle up - this is going to be an informative ride. 

First things First - What is a Mutual Fund? 

A mutual fund is a financial vehicle that is a made-up pool of money compiled from a lot of investors to invest in securities such as bonds, stocks, and money market instruments. They are typically operated by professional capital gains or income for the fund's investors. A mutual fund's portfolio is structured and maintained to match investment goals that have been mentioned in the prospectus. 

Even if you are a small investor or an individual trying to gain access to professionally managed portfolios of bonds, equities, and other securities - you will get to go through that through a mutual fund. 

Now, without further adieu - let's get going to the part where we talk about the different types of mutual funds. 

The Distinct Types of Mutual Funds Explained 

If you have been thinking about investing in mutual funds, your very first job would be to know what kind of mutual fund is your kind of mutual fund. Here is a broad list, have a glimpse at: