Mutual Fund Types Listed, Classified and Over-viewed

Mutual Fund Investments

Mutual Fund typically pool money of different investors and re-invest it into stocks, bonds and securities.

They’re a great option for those of us who find trading in the stock market difficult due to lack of knowledge or apprehension in investing into shares. The money collected in a fund is invested by individuals we call ‘Fund managers’. These Fund Managers have great financial investment expertise and keep track of the stock market.

Types of MF:

Open End Mutual Fund

  • It is said to be Open at the time for Entry and Exit
  • Meaning, invest anytime and get out anytime.


Close End Mutual Fund

  • Specified entry time and exit time
  • It has 3 durations – Large, Mid and Small Cap


Large Cap Mutual Funds

  • Relates to investing in large cap companies with a long term record.
  • They have less risk involved.


Mid Cap Mutual Funds

  • Investing in middle sized companies.
  • Risks involved but also more returns estimated as middle sized companies have potential to grow


Small Cap Mutual Funds

  • Investing in small companies
  • High risk involved with average return possibility


Equity Mutual Funds

It is when a company invests majority of its money into its own shares (equity).


Debt Mutual Fund

When a company invests into Government bonds, company bonds etc.


Balanced Mutual Fund

One where a company invests in both Equity and Debt equally or as per a ratio.

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