Aggressive Funds are a type of mutual fund that primarily invests in high-growth, high-risk assets to generate superior long-term returns. These funds typically have a higher allocation to equities, especially mid-cap and small-cap stocks, making them more volatile but potentially rewarding for investors with a high-risk appetite.
Conservative Funds are a type of mutual fund that prioritizes capital protection and stable returns over aggressive growth. These funds typically have a higher allocation to debt instruments and a smaller exposure to equities, making them less volatile and suitable for risk-averse investors.
Equity Savings Funds are hybrid mutual funds that invest in a combination of equity, arbitrage opportunities, and debt instruments to generate stable returns with lower volatility.
An Aggressive Hybrid Fund is a type of hybrid mutual fund that invests primarily in equity (stocks) and a smaller portion in debt (fixed-income securities). These funds aim to provide long-term capital appreciation while maintaining a moderate level of risk by balancing between growth (equity) and stability (debt).
Multi Asset Allocation funds are a category of hybrid mutual funds that invest in at least three asset classes, such as:
- Equity (stocks)
- Debt (bonds, government securities)
- Commodities (gold, silver, exchange-traded commodity derivatives)
These funds aim to balance risk and return by dynamically shifting allocations based on market conditions. The key benefits include:
- Diversification: Reduces volatility by spreading investments across different asset classes.
- Risk Management: Equity offers growth, debt provides stability, and commodities act as a hedge against inflation.
- Flexibility: Fund managers adjust asset allocation based on economic and market trends.
Multi Asset Allocation funds are ideal for investors looking for moderate risk with a mix of growth and stability in their portfolio.
Arbitrage funds are a type of mutual fund that seeks to generate returns by taking advantage of price differences between the cash (spot) and derivatives (futures) markets. These funds primarily invest in equity stocks and simultaneously take an opposite position in the futures market to capture risk-free profits.
A Conservative Hybrid Fund is a type of mutual fund that primarily invests in debt instruments while maintaining a limited allocation to equities. These funds aim to provide stable returns with lower risk compared to pure equity funds while offering some growth potential through equity exposure.
