A Mutual Fund is an investment vehicle that pools money from multiple investors and invests it in stocks, bonds, or other assets. It is managed by professional fund managers who aim to generate returns based on the fund’s objectives.

A Systematic Investment Plan (SIP) is a disciplined way to invest in mutual funds, where you invest a fixed amount regularly (monthly/quarterly). SIP helps in wealth creation through the power of compounding and rupee cost averaging.

Affordable & Convenient – Start with as low as ₹500 per month.

No Need to Time the Market - Reduces the risk of market fluctuations.

Power of Compounding – Small investments grow significantly over time.

Disciplined Investing – Helps in long-term wealth accumulation.

1. Based on Asset Class:

Equity Funds – Invest mainly in stocks, suitable for long-term growth.

Debt Funds – Invest in bonds and fixed-income instruments for stability.

Hybrid Funds – A mix of equity and debt for balanced risk and returns.

Commodity Funds – Invest in commodities like gold, silver, or oil.

Real Estate Funds – Invest in real estate projects and REITs.

2. Based on Investment Objectives:

Growth Funds – Focus on capital appreciation by investing in high-growth stocks.

Income Funds – Aim to provide regular income through dividends and interest.

Tax-Saving Funds (ELSS) – Offer tax benefits under Section 80C with a 3-year lock-in.

Liquidity Funds – Short-term investments with high liquidity.

Pension Funds – Help in retirement planning with long-term capital accumulation.

3. Based on Structure:

Open-Ended Funds – Can be bought or sold anytime without a fixed maturity period.

Close-Ended Funds – Have a fixed tenure and can only be redeemed at maturity.

Interval Funds – Allow purchases and redemptions at specific intervals.

4. Based on Risk Factor:

Low-Risk Funds – Debt and liquid funds ideal for conservative investors.

Medium-Risk Funds – Hybrid and balanced funds offering moderate returns.

High-Risk Funds – Equity and sectoral funds with high return potential.

5. Based on Sector & Strategy:

Index Funds – Track stock market indices like NIFTY or SENSEX.

Sectoral Funds – Invest in specific industries like IT, Pharma, or Banking.

Thematic Funds – Follow investment themes like infrastructure or ESG.

International Funds – Invest in foreign markets for global exposure.