TYPES OF MUTUAL FUND - Based on Asset class

TYPES OF MUTUAL FUND - Based on Asset class

1) Equity Funds - Invest primarily in equity Shares.(sub types we will see later)

2) Debt Funds - Invests in primarily in fixed assets like Government and Corporate Bonds, and Bonds and deposits of Bank and financial institutions. All have lower risks than compared to equity asset. Further witin this type there are Diversified debt funds, Focused Debt funds, High yield Debt Funds, Fixed Term Plan Funds

3) Gilt Funds - Invest primarily in Government Securies with medium to long term maturities (over one year).These funds have little risk and hence offer better protection of principal.

4) Money market/Liquid Funds - Invest primarily in debt securities of short term in nature (less than one year), like Treasury bills, Bank's Certificate of deposits and Commercial papers of companies. Risk level remain lowest.

5) Hybrid funds - These offer mix of asset clsses. i) Balanced Fund - Have equal or near equal mix of equities and Debt instrumensts. ii) Equity oriented Hybrid fund - Have higher proportion of Equities with debt instruments (75 -25 or 80-20) iii)Debt oriented Hybrid fund - Have higher proportion of Debt instruments with equity capital (75 -25 or 80-20)

6) Commodity Funds - Invest in physical assets like Gold, platinum and Silver etc., i)) Precious metal Fund invest in mix of all of these while ii) Gold Funds - Invests in physical Gold and Gold futures and companies.

7)Real Estate Funds - Invest primarily in real estate and related companies.

8)Exchange Traded Funds - Invests in euities of a market index. The units of this fund is traded as a stock in the exchange. For eg., Gold Exchange Traded Fund (GETF) tracks the price of physical Gold and traded in the Stock exchanges.

9)Fund of Funds - This fund onests in othet mutual fund schemes with a select portfolio of mutual fund schemes.

For Selecting, investing in the types of funds that are best suited to you, one time or SIP and after servicing please contact
C.RAMESH

098941 05790

maharajramesh@gmail.com

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‘‘You are neither right nor wrong because the crowd disagreeswith you. You are right because your data and reasoning areright.’’-- Benjamin Graham

Chasing Two Rabbits

A martial arts student approached his teacher with a question. "I'd like to improve my knowledge of the martial arts. In addition to learning from you, I'd like to study with another teacher in order to learn another style. What do you think of this idea?" "The hunter who chases two rabbits," answered the master, "catches neither one."