Financials & Investment Solutions

Investment Options

Explore diverse asset investment options with ease and security

What Is a Mutual Fund?

A Mutual fund is a pool of investments by different investors in securities such as debt, equity or both. In simple words, it collects funds from investors like individuals and institutions and invests them in bonds, stocks or other short-term investment plans. 

Types of Equity Funds

By Market Capitalization

• Large Cap

  Invests in Top 100 stocks

• Mid Cap

  Invests in Next 150 stocks

• Small Cap

  Invests outside Top 250 stocks

• Large & MidCap

  Invests in Top 250 stocks

By Diversification

• Multi Cap

  Invests in stocks across market cap

• Flexi Cap

  Invests across large, mid and small-cap stocks

• International

  Invests in world's top stocks

• Strategy

  Invests in debt and arbitrage funds

• Factor

  Passively invest in strategies like value, momentum, etc.

Types of Mutual Funds

Mutual funds are classified based on asset allocation, investment objectives, and fund structures. Each category serves different financial goals, from capital appreciation to income generation and risk management.

Index Funds

• Multi Cap Index

  Passively invest in large, mid, & small-cap stocks

• Large Cap Index

  Passively invest in top 100 companies

• Mid Cap Index

  Invest to replicate mid-cap indices

• Small Cap Index

  Invest to replicate small-cap indices

• Large & MidCap Index

  Passively invest in large & mid-cap companies

• International Index

  Invest to replicate sector-specific indices

• Other Equity Index

  Passively invest in top 100 companies

Sector Funds

• Sectoral-Banking

  Invests in banking stocks

• Sectoral-Technology

  Invests in Technology stocks

• Sectoral-Infrastructure

  Invests in Infra stocks

• Sectoral-Pharma

  Invests in Pharma stocks

Thematic Funds

• Thematic-Consumption

  Invests in consumption stocks

• Energy

  Invests in Energy stocks

• Thematic-PSU

  Invests in PSU stocks

• Thematic-MNC

  Invests in MNC stocks

• Thematic

  Invests in a specific theme

• Thematic-ESG

  ESG Thematic Funds: Invest in Top-performing ESG themed funds in India

Others Funds

• ELSS

  Invest to save taxes under 80C and earn additional returns

• Retirement Solutions

  Aggressive saving strategy for retirement

Types of Mutual Funds based on asset class

1. Equity Funds

2. Debt Funds

3. Money Market Funds

4. Hybrid Funds

Frequently asked questions

1.What is Mutual Fund?

Essentially, the money pooled in by a large number of people (or investors) is what makes up a Mutual Fund. This fund is managed by a professional fund Manager.

2.What are the various types of mutual funds?

Various types of Mutual Fund schemes exist to cater to different needs of different people. Largely there are three types mutual funds.

1. Equity or Growth Funds,

• These invest predominantly in equities i.e. shares of companies

• The primary objective is wealth creation or capital appreciation.

• They have the potential to generate higher return and are best for long term investments.

• Examples would be

  • “Large Cap” funds which invest predominantly in companies that run large established business

  • “Mid Cap funds” which invest in mid-sized companies. funds which invest in mid-sized companies.

  • “Small Cap” funds that invest in small sized companies

  • "Multi Cap funds" that invest in a mix of large, mid and small sized companies.

  • “Sector” funds that invest in companies that are related to one type of business. For e.g. Technology funds that invest only in technology companies

  • “Thematic” funds that invest in a common theme. For e.g. Infrastructure funds that invest in companies that will benefit from the growth in the infrastructure segment

  • Tax-Saving Funds

2. Income or Bond or Fixed Income Funds

• These invest in Fixed Income Securities, like Government Securities or Bonds, Commercial Papers and Debentures, Bank Certificates of Deposits and Money Market instruments like Treasury Bills, Commercial Paper, etc.

• These are relatively safer investments and are suitable for Income Generation.

• Examples would be Liquid Funds, Short Term, Floating Rate, Corporate Debt, Dynamic Bond, Gilt Funds, etc.

3. Hybrid Funds

• These invest in both Equities and Fixed Income, thus offering the best of both, Growth Potential as well as Income Generation.

• Examples would be Aggressive Balanced Funds, Conservative Balanced Funds, Pension Plans, Child Plans and Monthly Income Plans, etc.

3.How is ULIP different from Mutual Fund?

A ULIP is Unit-Linked Insurance Plan. It is a life insurance policy with an investment component that is invested in various financial markets. The returns generated by the investment component determine the value of the policy. However, the sum assured on the death of the policy holder may not be a function of the market – the minimum sum assured may remain unaffected. In other words, a ULIP is a hybrid product, combining investment and insurance.

The investment component of ULIP is similar to a Mutual Fund.

1. Both are managed investments.

2. For both, a team of professionals manages the investments and the funds are invested in line with a stated objective.

3. There would be units allotted to the investor on purchase and there would be NAV per unit declared periodically.

Since ULIP is an insurance policy, failure to pay regular premium would result in termination of the risk cover.

In Mutual Funds, all the expenses are charged before calculation of the NAV, whereas in case of ULIP, some expenses are charged like mutual funds, whereas some others are charged by cancelling a small number of units from the investors’ accounts.

4.How do I fulfill my financial goals?

To begin with, it is important to select the right scheme for your investment need. Look at it this way. How do you decide what mode of transport you should take when you travel? Whether you want to walk it up, take an auto rickshaw, a train or a flight, it all depends on your destination, on your budget and travel time available. How do you decide what mode of transport you should take when you travel? Whether you want to walk it up, take an auto rickshaw, a train or a flight, it all depends on your destination, on your budget and travel time available. Planning for your fInancial goals is also is also uses the same kind of principles. Different modes of transport for different travel needs – different schemes (or combination of schemes) for different needs.

5.What is Systematic Investment Plan (SIP)?

Systematic Investment Plan (SIP) is an investment route offered by Mutual Funds wherein one can invest a fixed amount in a Mutual Fund scheme at regular intervals– say once a month or once a quarter, instead of making a lump-sum investment. The installment amount could be as little as INR 500 a month and is similar to a recurring deposit. It’s convenient as you can give your bank standing instructions to debit the amount every month.