Invest primarily in stocks. Categories include large-cap, mid-cap, small-cap, sectoral, and thematic funds.
Invest in fixed-income securities like government bonds, corporate bonds, and debentures. Categories include liquid funds, income funds, and gilt funds.
Invest in a mix of equity and debt instruments. Categories include balanced funds, monthly income plans (MIPs), and arbitrage funds.
Invest in short-term money market instruments like treasury bills and commercial paper. These funds are low-risk and offer liquidity.
SIP is a popular investment strategy where investors contribute a fixed amount regularly (monthly or quarterly) to invest in a mutual fund. This approach helps in rupee-cost averaging and disciplined investing.
SWP allows investors to withdraw a fixed amount regularly from their mutual fund investments. It is a method of generating a steady income from mutual fund holdings.
Investors can also make a one-time lump sum investment in mutual funds. The investment amount determines the number of units allocated to the investor.
Investing in mutual funds offers several advantages that make them a popular choice for a wide range of investors. Here are some reasons why individuals choose to invest in mutual funds: