Outlook Money
Mutual Funds are considered a very good option in terms of investment. Despite being market-linked, a big fund can be created through this scheme.
There are many ways to invest in mutual funds like Debt Funds, Equity Funds and Hybrid Funds.
If one wants to invest in mutual funds with very low risk and for a short period, then debt funds are considered a better option in this case. In these funds, the money taken from investors is invested in fixed-income securities like bonds, government securities, treasury bills non-convertible debentures, etc.
Equity Funds are also known as Stock Funds. In equity, money is invested in stocks. If there is a long-term investment plan then the investor is advised to invest in equity funds, because they can compensate for the losses incurred due to market volatility.
A hybrid fund is a mutual fund scheme that invests in both equity and debt. Many times, the fund money is also invested in gold. If one wants to avoid market risk, then he/she can choose a hybrid fund.
Compiled by Syed Muskan