Mutual funds are one of the greatest tools for making more money today. They provide higher interest rates on the amount of money invested & consequently the amount of money obtained at the end is higher compared to the amount obtained by banks and other financial institutions of India. Here are different Types of Mutual Funds in India for attracting the investor..
Money Market Funds
These are commonly differentiated as having the lower risk factor because they typically comprise of government bonds and treasury bills. While you cannot predict the massive return on investment because money market funds are suitable for those who are conventional and wish to neglect risk altogether. The excellent thing about these kinds of funds is that you can predict to avail double the amount what you would receive from a savings account.
Global Fund
This type comprises of investments all over the world and is normally difficult to differentiate them as being safer or riskier than other kinds of mutual funds. One thing to consider is that depending upon the economic climate of the nation which is being invested in, they can be highly volatile. Moreover, these kinds of mutual funds are a wonderful choice for countries with potent growth like China or India.
Balanced Funds
You can easily guess from the name that these kinds of mutual funds invest into various types of assets like bonds, equities, and stocks. Typically, these funds comprise of 40% fixed income assets with other 60% in equities. These mutual funds are suitable for those investors who wish to classify their risk factor by investing in various assets while also obtaining a return on their investment.
Value Funds
On the other hand, Value funds are invested by companies, but the fund managers feel that it is undervalued by the market. Due to these reasons, most of the investors do not prefer this investment type. These funds improve their profit range when their firms improve in popularity and profitability.
Before you invest, ensure to do proper research for knowing the risks and benefits available for every scheme. Finding a suitable mutual fund will ultimately depend upon what you are comfy with.
