SERVICESMutual Funds
A mutual fund combines money from multiple investors and invests it according to a stated objective. The right category depends on your goal, investment period and ability to handle ups and downs.
Equity funds
Invest mainly in shares and may include large-cap, mid-cap, small-cap, flexi-cap, multi-cap, focused, sectoral/thematic and index funds. These can be volatile and are generally more suitable for longer horizons.
Debt funds
Invest mainly in debt and money-market instruments. They still carry risks, including interest-rate and credit risk, and are not the same as a bank deposit.
Hybrid funds
Combine equity and debt in varying proportions. The mix and risk level differ by scheme.
ELSS / tax-saving funds
Equity-linked savings schemes may offer tax benefits when the investor and investment qualify under applicable tax rules. They carry market risk and have a lock-in period under current scheme rules.
Index funds, ETFs and liquid funds
Index funds and ETFs aim to track an index or basket. Liquid and overnight funds focus on short-duration money-market instruments but still have product-specific risks. Check tracking difference, expense ratio, liquidity and exit rules.
Fund of Funds and international funds
These invest through other funds or provide exposure to markets outside India, depending on the scheme. Check underlying holdings, extra costs, currency risk, taxation and scheme eligibility.
SIP or lump sum
An SIP invests a chosen amount at regular intervals; lump sum invests an amount at once. Neither approach guarantees a profit. Review affordability and the fund documents before investing.
Mutual fund investments are subject to market risks. Read scheme-related documents carefully. Past performance does not assure future returns; no return is guaranteed.