Mutual Funds are one of the best investment products for long-term investors. Here we come with a detailed explanation on the different types of mutual funds in India. As the term “Mutual” mentions, the process is to collect small funds from various investors across the globe, invest in selected shares of companies, and manage by a Fund Manager under an Asset Management Company (AMC).
If you are new to Share, we recommend you go through what SENSEX has produced as returns in 35 years. Shares are not everyone’s cups of tea. It requires a minimum purchase of 1 share, and some share prices like MRF are at Rs. 75000. So, Mutual Funds can be a viable option to invest in multiple shares. As the investment diversifies, the level of risk comes down.
This article elaborates entirely on the different types of mutual funds in India. In 1963, India launched their 1st ever mutual funds by United Trust of India (UTI).
This was an initiative by the Indian government and the Reserve Bank of India to induce personal savings and escalate the fund for public organizations to grow the nation. However, till the time mutual funds were introduced into the financial segment of the country, it was a bit difficult for middle-class people to enter the share market. Yet, as an aspirant investor, you should go through the risk ratios of mutual funds