My Tax & Diary

Mutual Fund Category

What is Mutual fund and why to invest in Mutual Fund

Clikc Here for Mutual Fund - Glossary

Understanding various terms of Mutual Fund (MF)

Mutual Fund - Fillable Forms

Benefit of Use of Fillable Forms -

  1. No risk of wrong records due to illegible or unclear filled forms
  2. They are free from cutting & overwriting which may create problem at the time of redemption

Mutual Fund Category

Classification of a scheme depending on the type of assets in which the corpus is invested by the mutual fund company. It could be a growth, debt, balanced, gilt or liquid scheme.

Balanced Funds

Funds that invest in equity and debt instruments in varying proportions. These funds supplement capital appreciation from equities with a steady return from debt instruments. To a large extent, the returns depend on the performance of the equity portion in the portfolio. There is some flexibility in changing the asset composition between equity and debt and fund managers exploit this to buy the best asset class at each time.

Debt / Income Funds

Funds that invest in income bearing instruments such as corporate debentures, PSU bonds, gilts, treasury bills, certificates of deposit and commercial papers. Although these funds are less volatile, the underlying investments carry a credit risk. Comparatively, these funds are less risky and are preferred by risk-averse investors.

Gilt funds

Funds which invest only in government securities of different maturities with virtually no default risk. While returns are steady and secure, they are generally lower than those from other debt funds.

Income / Debt Funds

Funds that invest in income bearing instruments such as corporate debentures, PSU bonds, gilts, treasury bills, certificates of deposit, commercial papers etc. Although these funds are less volatile, the underlying investments carry a credit risk. Comparatively, these funds are less risky and are preferred by risk-averse investors.

Index Funds

A class of equity funds that invest in equity shares of various companies in the same proportion in which they appear in the composition of any popular index, such as the BSE Sensex, S&P 500 or NASDAQ composite. The performance of such funds closely tracks the performance of the index.

liquid funds / money market funds

Funds investing in short-term money market instruments including treasury bills, commercial paper and certificates of deposit.











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