To achieve your dreams of owning a car or a house or going for higher education you need to invest. Mutual funds offer investment solution to suit every investor’s needs and goals. There are different kinds of mutual funds for different kinds of financial needs. Mutual funds are ideal to meet short, medium and long term financial needs with different levels of risk.
Types of mutual funds
Mutual funds can be classified into two main categories.
- Based on the scheme structure
- Based on the asset class the scheme invests in
Based on the scheme structure that can be further classified as
- Open ended schemes
- These schemes are always open to investors. You can buy and sell units on a continuous basis.
- Close ended schemes
These schemes have a lock-in period of 3 – 5 years based on the scheme objective.
Based on the asset the scheme invests in they can be further classified as
- Equity schemes
These schemes are suitable for long term investment. They can focus on an individual sector or diversify across sectors. Some schemes invest in global markets. Some schemes also offer tax benefits.
- Debt schemes
These schemes aim to stabilize the equity portfolio and can provide stable returns. They mainly invest in interest bearing securities. Some schemes provide easy liquidity suitable to park surplus funds for short term. Certain schemes provide investment opportunities across different time periods. Some schemes try to benefit from changing interest rates.
- Hybrid schemes
These schemes provide a blend of equity and debt schemes. They invest in stocks or bonds depending upon the scheme. Some schemes allow you to invest in gold units without having to worry about storing and insuring physical gold.
You have to identify your goal and choose a fund that suits your needs. This way you can the best mutual fund returns. ICICI Pru MF offers financial advisors who can guide you to choose the right fund as per your investment objectives. They help you optimize your mutual fund investments.They develop a plan that suits your needs.
- Mutual fund calculator
Sometimes figuring out, keeping track and planning your investments can get difficult. The calculations and the numbers can get tough. ICICI Pru MF offers a range of mutual fund calculators to help you. These calculators offer user friendly investment options and can help you keep track and plan your investment goals. They make investing a easy and enjoyable experience and also a profitable business.