Types of Mutual Funds: Equity, Debt, ETF, Index and more

What is a Mutual Fund?

Types of Mutual Funds in India

Types of Mutual Funds in India

Let’s explore the different types of mutual funds in India

Equity funds

Types of Equity Funds- Types of Mutual Funds

1. Large Cap Funds

2. Large & Mid Cap Funds

3. Multicap (Diversified) Funds

4. Mid Cap Funds

5. Small Cap Funds

Debt Funds

Hybrid Funds

Balanced Funds: Examples:

-HDFC Balanced Advantage Fund

-ICICI Prudential Equity & Debt Fund

Aggressive Hybrid Funds: Examples:

-Mirae Asset Hybrid Equity Fund

Index Fund

Tax-saving (ELSS) Funds

Advantages & Disadvantages- types of mutual funds


1. Diversification: MFs pool money from various investors to invest in a diversified portfolio of stocks, bonds, or other securities. This spreads risk compared to investing in individual stocks.

2. Professional Management: Fund managers handle the day-to-day decisions, market research, and security selection. This can be beneficial, especially if you’re not experienced in managing a stock portfolio.

3. Accessibility: Mutual funds are easily accessible, and you can start with a relatively small amount of money.

4. Lower Entry Barrier: You can invest in a variety of assets even with a limited budget. This makes it suitable for beginners or those with smaller sums to invest.

5. SIPs for Discipline: Systematic Investment Plans (SIPs) help in disciplined investing. You can invest a fixed amount regularly, which helps in rupee cost averaging.


1. Fees and Expenses: Mutual funds charge fees, including expense ratios and sometimes entry/exit loads. This can impact your overall returns.

2. Limited Control: You’re relying on a fund manager’s decisions, and you have no control over individual stock selections.



The blog is meant for informational purposes and serves the general analysis of the stocks. Contents provided here are based on careful research and analysis utilizing the fundamental and technical indicators over a period of time. The post does not consist any direct recommendation about Investing or trading in the securities market. Thorough research and careful consideration are necessary for individuals to fulfill their personal responsibility in making financial decisions. Seeking professional advice before making any financial decisions is always advisable.

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