Mutual funds are a pool of capital collected from different investors for a common purpose. These can be capital appreciation, stable income generation, or a combination of both. Broadly, they are classified into equity funds, debt funds, and hybrid funds.
Equity funds invest in stocks of companies with different market capitalizations. They aim to appreciate the invested capital over time. However, they come with elevated risks for the investors.
Debt funds, on the other hand, invest in instruments such as low-risk instruments such as bonds, debentures, and money-market instruments.
Hybrid funds invest in a combination of equity and debt instruments to help investors benefit from capital appreciation and income generation.
Mutual funds are a pool of capital collected from different investors for a common purpose. These can be capital appreciation, stable income generation, or a combination of both. Broadly, they are classified into equity funds, debt funds, and hybrid funds.
Equity funds invest in stocks of companies with different market capitalizations. They aim to appreciate the invested capital over time. However, they come with elevated risks for the investors.
Debt funds, on the other hand, invest in instruments such as low-risk instruments such as bonds, debentures, and money-market instruments.
Hybrid funds invest in a combination of equity and debt instruments to help investors benefit from capital appreciation and income generation.