Top Performing Mutual Funds
DSP Equity Fund
Return Since Launch: 19.46 % Riskometer: Moderately High
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Return Since Launch: 19.31 % Riskometer: High
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Mirae Asset Emerging Bluechip Fund
Return Since Launch: 20.11 % Riskometer: High
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Aditya Birla Sun Life Equity Fund
Return Since Launch: 23.08 % Riskometer: Moderately High
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Franklin India Prima Fund
Return Since Launch: 19.46 % Riskometer: Moderately High
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ICICI Prudential Value Discovery Fund
Return Since Launch: 19.97 % Riskometer: Moderately High
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Top Selling Mutual Funds
Mirae Asset India Equity Fund
Return Since Launch: 15.34 % Riskometer: Moderately High
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UTI Equity Fund
Return Since Launch: 12.08 % Riskometer: Moderately High
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Axis Bluechip Fund
Return Since Launch: 11.39 % Riskometer: Moderately High
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Mirae Asset Emerging Bluechip Fund
Return Since Launch: 20.11% Riskometer: Moderately High
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Invesco India Mid-Cap Fund
Return Since Launch: 13.56% Riskometer: Moderately High
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HDFC Small Cap Fund
Return Since Launch: 13.61 % Riskometer: Moderately High
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Mutual Fund

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Now-a-days mutual funds are very popular investment instrument across the entire market segment. Because it helps investors to invest not only in equity market but also in debt papers, govt. securities, money market instruments to safeguard market volatility with better returns compared to bank’s Fixed Deposit, Recurring Deposit and Postal Savings. Mutual Fund collect capitals from common investors and invests in company shares, bonds and stocks. They collect money all over from market and invest a huge amount. An experience fund manager manages a mutual fund so your money won’t go in vain. If you need a great return you have to invest at least for five- ten years. A common man can’t just invest in share or bonds he or she needs to study and also give their entire time market so it is easier to invest in stock and bonds by mutual fund which can help so much in someone’s retirement plan or higher study plan or wedding plan.

Why Mutual Fund is so popular?

Let us find out the reason behind why mutual fund is so popular. If you want to invest your money in a safe place and you also want the high interest rate in a short time- Debt Fund is best option for you. And if you want to take risk and also invest your money for a long time- Equity fund is the best option for you. From the Equity fund you can get interest up to 15%.

There is a vast market out there for mutual fund. A mutual fund is managed by professionals. They have a lot experience and knowledge about managing this fund. Mutual Funds are also subject to market risk. So there is a possibility that you can’t get that amount of interest rate as you expected. But as it is a huge platform and as your money is invested not only in one company so you will always get interests. But SIPs are really safe for investment. No one will fly away with your money because they are all registered under Securities Exchange Board of India (SEBI).

Types of Mutual Fund

Though the classification can be really complicated but mutual fund can be categorized in to three types based on their investment kind and risk involved.

Based On:

Asset
Structure
Investment Objectives

Equity Funds

Equity Funds are most popular now-a-days. It is also called as stock funds. Funds pool money from market and invest all those money in stock of various companies. This fund is managed by experienced fund managers. There is a high risk in these funds. But the interest rate is also high. And the time is also very long. If you are young and just started to earning money, EQUITY FUNDS are best option for you.

Debt Funds

Debt funds are short time funds. If you don’t want to take any risk but also want to invest your money for high interest rate, Debt Fund is best for you. A debt fund is an investment pool, such as a mutual fund or exchange-traded fund, in which core holdings are fixed income investments.

Money Market Funds

Investors can easily access in the money market. It is an open ended mutual fund. It invests in short-term debt securities such as US Treasury bills and commercial paper. It is as safe as bank deposits.

Balanced or Hybrid Funds

Hybrid funds are kind of mutual fund which invests both in equity funds and debt funds. That’s why it is safe to invest in hybrid fund. If you are not getting proper interest from equity fund but you are still getting your fixed interest from debt funds. So your money won’t be drowning.

Sectoral Funds

As the name suggests, a sectoral fund invest in particular industry or sector of the economy. This fund is also named as ETF or Exchange Traded Fund.

Index Funds

A Index fund’s portfolio constructed to track the components of a market index like- S&P 500. This fund has low expense ratio and low portfolio turnover.

Tax saving Funds

It offers tax deduction under Section 80C of Income Tax Act. Tax-saving funds invests primarily in equity market to generate wealth. So, this mutual fund offers dual benefit. Other than generating good amount of return, it helps you in saving your tax too.

Funds Of Funds

A mutual fund who invests in other mutual funds are called funds of funds. In India, this fund invests in the same AMC.

Open-Ended Funds

Open-Ended Fund is an investment scheme which can issue and redeem shares any time. The investors can enter and exit the fund whenever they want. The open-ended fund does not set any limit on the number of units that can be issued. These funds are not traded in the open market. The fund units are purchased and sold at their NAV. The NAV changes regularly based on the market fluctuations depending on the value of the underlying assets and is evaluated at the end of each trading day. There is no fixed maturity period of this fund. The size of open-ended fund increases or decreases in size depending on the sell and repurchase of the fund units.

Close-Ended Funds

Closed-Ended Fund is an investment scheme which issues a fixed number of shares which are traded on the stock exchange. It is launched through NFO and is traded like a stock in the open market. The price of each share is dependent on the market and differs from the NAV of the fund. Supply and demand affects the actual price which is in premium or discount to the NAV when it is higher or lower the NAV respectively. Closed-ended fund has a fixed maturity period before which it can’t be redeemed. Generally, this fund trades at a discount to their underlying value of the asset.The size of closed-ended fund does not change as there is no sudden redemption before the maturity date.

Growth Fund

In these scheme investors can invest their money on equity funds. You can invest your money if you want a high return. This is a long time investment and also has a huge risk.

Income Fund

Under this scheme money is invested on fixed income instruments such as debentures, bonds etc.

Liquid Funds

This is a short time fund. In this fund you can invest in T-Bills, CP’s etc. They are considered to be low risk with moderate returns.

Related Article

Mutual Fund Advantages

Managed by the professionals

Often people ask what is the main advantage of mutual fund, so here is the answer mutual funds are managed by professional and experienced fund managers. Individual Investors don’t have so much time to follow the market or study about market so an expert whom we call fund manager follows the market ,invest ,or sells share stocks as per market’s need.

Tax Relief

Mutual Fund (ELSS) are one of the tax saving instrument. You can save tax up to Rs.1.5lakh. If you check back you can see ELSS (Equity Linked Savings Scheme) has generated so much returns. You can get tax benefit under 80C with the help of ELSS. ELSS invests in equity so the return is always handsome.

Liquidity

The most helpful thing in mutual fund is its liquidity you can redeem your money whenever you want. It’s just takes 2-3 hours to redeem your money but in ELSS you can’t redeem your money it comes with three years lock in period.

Diversification on its best

In mutual fund the most important thing is diversification fund managers invests in various stocks and shares so if one under performs the other one can gain more.

Investment Goal

We all have goals for our investment someone plan their retirement with the investment or someone plan holiday with their investment or someone just plan for their higher study or etc. So the mutual fund offers various investment scheme with various risk appetite so you can invest as per your investment goal.

Systematic Investment Plan

We all have heard about SIP. You can invest through SIP in mutual fund. You just can start with Rs.500 which is very low. It also helps you to make your financial discipline.

Easy to monitor

Investors can easily monitor there invested fund. Investors don’t have so much time to keep look on the fund so the fund house gives regular statements which makes it very easy.

Eligibility for investing in Mutual Funds

  • Adult citizens residing in India.
  • Tax Relief- Mutual Fund (ELSS) are one of the tax saving instrument. You can save tax up to Rs. 1.5 lakh. If you check back you can see ELSS (Equity Linked Savings Scheme) has generated so much returns. You can get tax benefit under 80C with the help of ELSS. ELSS invests in equity so the return is always handsome.
  • Liquidity- The most helpful thing in mutual fund is its liquidity you can redeem your money whenever you want. It’s just takes 2-3 hours to redeem your money but in ELSS you can’t redeem your money it comes with three years lock in period.
  • Diversification on its best- In mutual fund the most important thing is diversification fund managers invests in various stocks and shares so if one under performs the other one can gain more.
  • Investment Goal- We all have goals for our investment someone plan their retirement with the investment or someone plan holiday with their investment or someone just plan for their higher study or etc. So the mutual fund offers various investment scheme with various risk appetite so you can invest as per your investment goal.
  • Systematic Investment Plan- We all have heard about SIP. You can invest through SIP in mutual fund. You just can start with Rs.500 which is very low. It also helps you to make your financial discipline.
  • Easy to monitor- Investors can easily monitor there invested fund. Investors don’t have so much time to keep look on the fund so the fund house gives regular statements which makes it very easy.

Documents Needed

Pan Card
Voter’s ID
Aadhar Card
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The investors will be issued an acknowledgement receipt which he/she needs to submit while applying for subscribing for a mutual fund scheme.

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