Types of Mutual Funds – Equity Based, Balanced, Income Mutual Funds

Mutual Fund – Mutual fund is one of the popular investment instruments for the people who want to earn money from the stock market but don’t have enough time to look into the technicalities of the stocks or don’t have the required expertise to make their stock investment profitable.

The private and public stock and security companies offer various types of mutual fund schemes to participate the common people in stock investment. This is the best investment option for all those who wants to earn good profit and want to take benefits of roaring bull dragging the sensex, nifty and other sensexes in positive trend.

Types of Mutual Funds –

There are various types of Mutual funds are available in the stock market and offered by the stock investment and security companies. Based on the number of sectors, segments, sensex and other factors, companies launch varieties of mutual funds. One can invest in mutual fund based on the individual sector interest. Here it is described few of the mutual funds.

Equity based Mutual funds – This type of fund is completely 100% investment in stock market equity. The type of fund carries high risk value of price fluctuation and having good potentiality to earn good profit in a shorter duration.

Balanced Mutual Funds – This type of mutual fund is a great combination of investment option in fixed income investment options and equity investment. This is one of the best ways to invest in an instrument which carries moderate risk and good for the people who wants the benefit of double situation and want to invest in less risky mutual fund. The gain out of this financial instrument is also moderate when you risk capacity is moderate. But for middle class people those who love to their hard earned money and not ready to lose money with moderate gain satisfaction. The investment ratio in this instrument can be 60-40 or 40-60 proportionately for equity and fixed income investments. This ratio is defined by the mutual fund promoting company based on market situation and company policy.

Bond – Income Funds – This investment is completely secured with 100% investment in Government bonds and securities or bank Fixed deposits. This investment carries very low risk with average income. This is the safest instrument for people who do not want to invest in equity market at all.

There are many other types of mutual funds like international mutual funds, specialty funds and index funds based on various sensex moves. Based on risk appetite capacity, one can invest in particular type of mutual fund. Equity and commodity advisory services provides the best information about which mutual is best for your growing needs.