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What are Mutual funds?
Mutual funds are financial products built to provide good returns to the investors and eventually create wealth.
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For example,
For example, equity mutual funds will invest in equities(stocks) and debt mutual funds will invest in debt instruments like bonds. Balanced and hybrid mutual funds will invest in both equities and bonds.
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Equity Based
Equity-based mutual fund funds are further divided into various categories. For example, one of the categorizations is on the basis of company market capitalization into large-cap, mid-cap, small-cap, multi-cap, etc.
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Debt Based
Debt funds are divided into short term debt fund, long term debt fund, ultra short term debt fund, liquid fund, etc.
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Risk
Each category of mutual fund has a different risk vs return profile. For example, equity mutual fund provides a higher return than debt mutual fund but the risk is also high. Risk is in terms of volatile returns.
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IDEAS CURATED BY
19 | Generalist, Content Creator, Student at Christ University. Stashing about entrepreneurship, self-help, spirituality and the most interesting stuff I read.
Aditya Mulukuri's ideas are part of this journey:
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