Types of Mutual Funds
If you are looking to invest in mutual funds then rest assure that you will find a mutual fund which is in accordance your requirements. In fact, there is a diverse portfolio of mutual funds out there which carries risks and rewards at the same time. But of course, the greater the potential returns, the higher the risk of a loss. Some funds might be less risky than others but at the end of the all funds do carry some level of risk – one cannot just hope for a risk free investment. This is facet applicable on all investments. Every mutual fund has predetermined investment objective that tailors the fund's assets,investment regions and investment strategies.
Start of Mutual Funds in India
India’s first mutual fund was established in 1963 in the form of Unit Trust of India (UTI) to allow people to participate in the financial market and make the economy stronger. Started jointly by the Reserve Bank and Government of India the basic premise of UTI was to encourage savings and investment, participation in the income and gains and profits coming to the corporation from holding and acquisition of securities.
Classification of Mutual Funds
The financial market is home to a very diverse variety of mutual funds. Each type of fund is created to meet specific financial goals. So it is very crucial to know all available variety of funds in order to make wise investment decisions. Well, here’s the list of mutual funds:
Types of mutual funds according to structure
Mutual funds can be divided into open and closed ended schemes based on how subscriptions are accepted from investors.