Different kinds of mutual funds

Mutual funds are a well-liked investment vehicle for investors. For investors with limited knowledge, time or money, mutual funds can provide simplicity and other benefits. Mutual funds are just the most suitable and versatile tool amongst the variety of financial tools available to you to fulfill various purposes. For the majority of individuals, mutual funds are the smartest way to go about meeting their objectives.

How does EquityBag assist you in doing this?
Besides being the most affordable option on the market, Equitybag helps you in selecting the appropriate mutual fund for you.
No matter what type of investor you are, there is bound to be a mutual fund that fits your taste.It's important to understand that each mutual fund has different risk and reward profiles.
But before you join the bandwagon, let’s examine the different kinds of mutual funds:
At the most basic level, there are three categories of mutual funds: those that invest in stocks (equity funds), those that invest in bonds (fixed-income funds), those that invest in both stocks and bonds (balanced funds), and those that seek the risk-free rate (money market funds).
Let’s delve into the details, shall we? Because as the adage goes, God is in the details.

Money market funds
Money market funds are: risk-free, short-term debt investments and it is mostly government treasury bills. This is the safest way to invest your hard earned money. Even though the returns may be low, you needn’t worry about losing your principal.

Income Funds
Income funds, as the name suggests provide you with a current income on a sturdy basis. These funds invest mostly in government and high-quality corporate debt, holding these bonds until maturity in order to provide interest streams. 

Bond Funds
Bond funds invest and actively trade in various types of bonds. Bond funds are often actively managed and seek to buy relatively undervalued bonds in order to sell them at a profit. These mutual funds will earn you higher returns, but the one glitch is the risk factor involved in this.

Balanced Funds
The motive behind these funds is to provide a balanced mixture of safety, income and capital appreciation. The strategy of balanced funds is to invest in a portfolio of both fixed income and equities. A typical balanced fund will have a weighting of 60% equity and 40% fixed income.

Equity Bonds
The largest category of mutual funds, which primarily invest in stocks. Generally, the investment objective of this class of funds is long-term capital growth. There are, however, many different types of equity funds because there are many different types of equities. 

Global/ International Funds
In an International fund (or foreign fund) you can invest in assets located outside your home country. In Global funds, meanwhile, you can invest anywhere around the world, including within your home country.
At EquityBag, your worry regarding various mutual funds is put to ease. Our experts will help you in selecting the fitting mutual fund for you. So what are you waiting for? Do drop in at our office, or else pick that phone and give us a call. Rest assures, your money will be in safe hands.