So What Types of Mutual Funds Are There?


Mutual funds help you raise money and earn very good returns on your investment by investing it across different securities and companies depending on the investment opportunity. Mutual funds are invested in diversified sectors of the economy depending upon the risk appetite of the investor. For instance, a pure growth equity fund invests in equity sectors like infrastructure, telecom, consumer durables etc. A debt fund invests in government bonds, short term instruments like commercial papers, debentures of companies etc.

There are several types of mutual funds. Here are they:

Equity/Growth Fund: In this form of mutual fund, the investment is done only in equities also known as stocks. The longer a stock is retained, the more will be the profit. The net asset value of the equity fund changes with the market trend.

Sector Fund: A mutual fund that invests in shares of firms working in definite industries is known as sector fund. An infrastructure fund would invest only in infrastructural companies.

Equity-link Savings Schemes: It is a close-ended fund which means you will only be able to en-cash the money after the investment period is over. Dividends are without tax.

Debt Fund: Debt funds are invested in fixed income securities, government bonds, debentures etc. The idea is to safeguard your investment and you can expect modest but fixed returns. The NAV(Net Asset Value) of a debt fund does not fluctuate like an equity fund

Liquid Fund: They are short-term debt funds. It is an ideal mode of investment for those who are interested in keeping their funds for a shorter duration – for seven to eight days.

Balanced Fund: This type of mutual fund involves investment in equity and debt. 50 to 75 percent of the investment is done in equity whereas the remaining is done in debt. One must be aware as how to he has to go about with stocks to bonds ratio to be free from any risk and earn profit.

Since mutual funds are subjected to market risks, involving in a risky business can be a little dangerous if you are very careful about your investments. How about going for a business that frees you from the worries of risks?

I am talking about two tier affiliate marketing, it not only takes you away from the troubles of risks involved in investments and makes you all the more confident about earning regular that too by staying home. More and more people are becoming a part of this business and experiencing how this type of affiliate marketing can help them earn consistent profits without risks.

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