Mutual Funds

A close-ended mutual fund is a type of mutual fund scheme that is open for subscription only during its launch period, also known as the New Fund Offer (NFO). This means investors generally cannot purchase additional units directly from the fund house after the subscription period closes.These funds usually come with a fixed maturity period.Close-ended mutual […]

As the name suggests, a Fund of Funds (FOF) is a type of mutual fund that invests in other mutual fund schemes instead of investing directly in stocks, bonds, or securities.A Fund of Funds may invest in schemes from the same fund house or from different fund houses.Depending on its investment strategy, an FOF can

International mutual funds are mutual fund schemes that invest in overseas securities and global markets.Some international mutual funds invest entirely in foreign securities, while others invest in a combination of domestic and international stocks.For example, the ICICI Prudential US Bluechip Equity Fund primarily invests in stocks of large companies listed in the United States.Similarly, the

As the name suggests, an ETF or Exchange-Traded Fund is a type of investment fund that is traded on a stock exchange, similar to shares of a company.ETFs may track an index, commodities, bonds, or other securities. Most ETFs are passively managed and aim to replicate the performance of the underlying index or asset they

As per the Oxford English Dictionary, the term “hybrid” refers to a mixture of two or more different things.In the context of mutual funds, a balanced or hybrid fund is a type of mutual fund that invests in a mix of equity (stocks), debt (fixed-income) instruments, and sometimes other asset classes.The primary objective of hybrid

A debt mutual fund is a type of mutual fund scheme that primarily invests in fixed-income instruments such as corporate bonds, government securities, treasury bills, certificates of deposit, and other money market instruments. The primary objective of these funds is generally to provide relatively stable returns while preserving capital and reducing volatility compared to equity

A mutual fund that primarily invests in stocks or equity-related instruments is called an equity mutual fund.These funds aim to generate long-term capital appreciation by investing in shares of companies across different sectors and industries.According to guidelines issued by the Securities and Exchange Board of India (SEBI), equity mutual funds must invest at least 65%

A mutual fund company incurs various expenses while managing a fund. It hires fund managers and analysts, pays salaries, operates offices, conducts research, and handles the buying and selling of securities.To cover these operational costs, mutual funds charge investors a fee known as the expense ratio.An expense ratio is the percentage of a fund’s annual

A mutual fund invests money in assets like stocks, bonds, and other securities. If these investments perform well, the value of the fund can increase, helping investors earn returns.The mutual fund company, also known as the Asset Management Company (AMC), earns money by charging fees such as the expense ratio and exit load for managing