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Investments & Markets

11 types of mutual fund schemes and their key features

Large-cap equity fundThinkStock Photos
Large-cap equity fund
Large-cap equity funds deliver stable, if not high returns over many years. These funds expose your investments to moderate risk and there won't be major fluctuations in the returns.
Multi-cap equity fundThinkStock Photos
Multi-cap equity fund
Multi-cap equity fund has the flexibility to invest across the spectrum of stocks. Hence it can adapt to changing market situations.
ELSS fundThinkStock Photos
ELSS fund
ELSS fund not only offers higher returns on your investments, but also qualifies for tax benefit under Section 80C.
Dynamic bond fundThinkStock Photos
Dynamic bond fund
Dynamic bond funds can deliver returns in both declining and rising rate scenario. These funds make the most of interest rate fluctuations by switching actively between bonds of different maturity profiles.
Small-cap equity fundThinkStock Photos
Small-cap equity fund
Small-cap equity fund invest aggressively in high-growth smaller companies yet to be discovered by the market. Hence, the potential of returns is high, but the risk profile is higher given the nature of exposure.
Short-term debt fundThinkStock Photos
Short-term debt fund
Short-term debt fund invests in short tenure bonds to deliver moderate yet dependable returns. This fund can provide a foundation for your entire portfolio.
Gilt fundThinkStock Photos
Gilt fund
This fund will make the most of a declining interest rate scenario by investing in long tenure government bonds, whose price appreciates sharply in such scenarios. Requires you to time both entry and exit from fund, else it can incur losses.
Mid-cap equity fundThinkStock Photos
Mid-cap equity fund
Mid-cap equity fund targets high returns by investing in mid-sized businesses growing at a fast clip. While it can give a boost to overall portfolio return, it will come with higher volatility.
Equity-oriented balanced fundThinkStock Photos
Equity-oriented balanced fund
Equity-oriented balanced fund offer stable returns over long run overcoming the interim volatility. This fund aims to capture the best of both worlds-the return potential of equities and safety of debt.
Liquid debt fundThinkStock Photos
Liquid debt fund
Liquid debt fund offer muted yet highly stable returns. Besides, this fund offers appropriate cover in case of emergency needs.
Credit opportunities debt fundThinkStock Photos
Credit opportunities debt fund
Credit opportunities debt fund eye higher returns via accrual from high-yield corporate bonds and from capital gains through any rating upgrades. While interest rate risk is limited, credit risk is higher owing to exposure to lower quality paper.


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