List of Mutual Funds: Types, Schemes, Categories & Comparison
A mutual fund list provides investors with insight into the various possibilities available across equity, debt, hybrid, solution-oriented, and other funds. The money so collected is then invested in securities like stocks, bonds, government securities, money-market instruments, and so on, depending on the scheme objective.
With hundreds of schemes available to select from in India, it might be difficult to choose a fund. Understanding the mutual fund list, fund type, investment objective, risk, and costs can make it easier to choose.
Guide explains that there are many types of mutual fund schemes, A brief knowledge about types of mutual funds, schemes and important types of mutual funds.
This Article Belongs to Mutual Funds
What is a Mutual Fund?
A Mutual Fund is an investment fund that is created when investors entrust their money, and the total investments are consolidated and invested in securities portfolio, which is managed by a fund manager.
For instance, an equity mutual fund will typically have stocks as its major component, while a debt mutual fund will primarily have fixed income securities.
Mutual funds pool money from investors and invest it in securities according to the scheme’s stated objective. Investors can learn more about mutual fund structure, categories, and associated risks through the SEBI investor education resources.
How Mutual Funds Work
The basic process can be represented as:
Investor → Mutual Fund Scheme → Professional Fund Management → Portfolio of Securities → Returns/Losses
The value of an investor’s units changes according to the performance of the underlying portfolio.
List of Mutual Funds by Major Categories
The mutual funds list can broadly be divided into equity, debt, hybrid, solution-oriented, and other categories.
| Mutual Fund Category | Primary Investment | Typical Risk Level | Suitable For |
| Equity Funds | Stocks | High to Very High | Long-term investors |
| Debt Funds | Bonds and fixed-income securities | Low to Moderate/High | Income and diversification |
| Hybrid Funds | Equity + Debt | Moderate to High | Balanced exposure |
| Solution-Oriented Funds | Retirement/children-related goals | Depends on scheme | Specific long-term goals |
| Other/Index & Fund-of-Funds | Indexes or other funds | Varies | Diversification/passive investing |
Risk levels are indicative and can vary significantly between individual schemes.
Types of Mutual Funds
Understanding the types of mutual funds is important before selecting a scheme. Mutual funds can be classified according to asset class, investment strategy, structure, and investment objective.
1. Equity Mutual Funds
Equity mutual funds invest primarily in shares of companies. They are generally designed for investors seeking long-term capital growth.
Common equity categories include:
- Large-cap funds
- Mid-cap funds
- Small-cap funds
- Large & mid-cap funds
- Multi-cap funds
- Flexi-cap funds
- Value/Contra funds
- Dividend Yield funds
- Focused funds
- Sectoral/Thematic funds
- ELSS funds
Equity funds tend to have high short-term volatility as their investments are related to the stock market.
2. Debt Mutual Funds
Debt funds invest in debt papers, like government securities, corporate bonds, treasury bills and any other debt or money-market instruments.
Examples of debt categories include:
| Debt Fund Category | General Focus |
| Overnight Fund | Securities with very short maturity |
| Liquid Fund | Short-term money-market instruments |
| Ultra Short Duration Fund | Very short-duration debt |
| Short Duration Fund | Short-duration debt securities |
| Corporate Bond Fund | Predominantly high-rated corporate bonds |
| Banking & PSU Debt Fund | Banking and public-sector debt |
| Gilt Fund | Government securities |
| Credit Risk Fund | Lower-rated corporate debt |
Debt funds are not equivalent to bank fixed deposits and are subject to market, interest-rate, and credit risks depending on the portfolio.
3. Hybrid Mutual Funds
Hybrid funds combine different asset classes, usually equity and debt, within a single portfolio.
Examples include:
- Conservative Hybrid Funds
- Balanced Hybrid Funds
- Aggressive Hybrid Funds
- Dynamic Asset Allocation Funds
- Multi-Asset Allocation Funds
- Arbitrage Funds
- Equity Savings Funds
The combination of asset classes can provide diversification, although the risk varies considerably across hybrid categories.
4. Solution-Oriented Mutual Funds
Solution-oriented schemes are designed around specific long-term financial objectives.
Examples include:
- Retirement-oriented funds
- Children’s fund schemes
These schemes may have specific investment requirements or restrictions. Investors should check the scheme documents before investing.
5. Index Funds
Index funds seek to match the performance of a specified market index, with less tracking error and lower expenses.
Such as an index fund trying to follow a vast stock-market index and not lean on a fund manager to perform stock-picking.
6. Fund of Funds
Fund of Funds (FoF): An FoF generally invests in other mutual fund schemes / funds than directly investing in shares.
Investors get access to more than 1 fund of funds through a single scheme. They should look at the expenses and structures of both the FoF and underlying funds.
List of Mutual Fund Schemes by Investment Style
Apart from asset class, schemes can also be differentiated by their investment approach.
| Investment Style | Description |
| Growth | Focuses on companies expected to grow over time |
| Value | Looks for securities considered undervalued |
| Contra | Uses a contrarian investment approach |
| Index/Passive | Attempts to track an index |
| Thematic | Focuses on a particular investment theme |
| Sectoral | Concentrates on a specific sector |
| Dividend Yield | Focuses on stocks with relatively higher dividend yields |
| Focused | Invests in a relatively concentrated portfolio |
An investment style can affect both returns and portfolio risk, particularly during different market cycles.
Best Mutual Fund Categories: How to Evaluate Them
Not one type of mutual fund is the best for every investor. The right category will vary based on your time frame, investment objectives, risk tolerance, liquidity needs, and current portfolio.
(For example, rather than choose this category solely because it has proved to be recently successful, investors can choose them by their objectives.)
| Investor Requirement | Categories That May Be Considered |
| Long-term wealth creation | Equity-oriented funds |
| Broad market exposure | Index funds |
| Diversified equity exposure | Flexi-cap/Multi-cap funds |
| Higher exposure to established companies | Large-cap funds |
| Exposure to mid-sized companies | Mid-cap funds |
| Higher growth potential with higher volatility | Small-cap funds |
| Combination of equity and debt | Hybrid funds |
| Short-term investment needs | Relevant short-duration/liquid categories |
| Tax-saving objective | ELSS, subject to applicable tax rules |
These are category-level examples rather than recommendations to invest in a particular scheme.
List of Mutual Fund Schemes: What to Check
A list of mutual fund schemes can contain hundreds of options. Comparing schemes only by their recent returns may therefore be misleading.
Investors can examine the following factors:
- Investment Objective
Read what the scheme intends to achieve and where it invests.
- Portfolio Composition
Check the securities, sectors, asset allocation, and concentration of the portfolio.
- Risk Level
Review the scheme’s disclosed risk information and understand the risks associated with its underlying investments.
- Expense Ratio
The expense ratio represents the expenses charged to the scheme. All else being equal, costs can affect an investor’s long-term returns.
- Fund Performance
Historical returns can provide useful information about how a fund performed during different periods, but they do not guarantee future performance.
- Fund Manager and Investment Process
Investors may examine the fund management team, investment philosophy, and consistency of the investment process.
- Exit Load
Some schemes may charge an exit load when units are redeemed within a specified period.
- Portfolio Turnover and Concentration
A concentrated portfolio may behave differently from a diversified one. Portfolio turnover can also provide insight into the fund’s trading activity.
Mutual Fund Comparison: Important Parameters
Mutual fund comparison should involve multiple parameters rather than focusing on one number.
| Parameter | Why It Matters |
| Category | Determines the broad investment mandate |
| Risk | Indicates potential volatility and investment risk |
| Returns | Shows historical performance |
| Expense Ratio | Indicates ongoing scheme expenses |
| AUM | Shows assets managed by the scheme |
| Portfolio | Helps understand underlying investments |
| Benchmark | Provides a reference for performance |
| Exit Load | Indicates possible redemption-related cost |
| Investment Horizon | Helps determine suitability for the goal |
For a meaningful comparison, funds should generally be compared with other schemes belonging to the same or closely related category.
Direct vs Regular Mutual Fund Plans
Many mutual fund schemes offer Direct and Regular plans.
A direct plan is purchased directly from the mutual fund without an intermediary distribution commission being included in the expense structure. A regular plan is purchased through a distributor or intermediary, with distribution-related expenses reflected in its expense structure.
| Feature | Direct Plan | Regular Plan |
| Purchase Route | Directly from AMC/platform | Through distributor/intermediary |
| Expense Ratio | Generally lower | Generally higher |
| Distribution Commission | Not included | Reflected in expenses |
| Investor Support | Investor manages process or uses platform support | Distributor may provide assistance |
The appropriate option depends partly on the investor’s knowledge, preferences, and need for assistance.
Growth and IDCW Options
Mutual fund schemes may also offer different plan or option structures, subject to the scheme’s provisions.
Two commonly encountered options are:
- Growth
- IDCW
Under a growth option, returns generally remain invested in the scheme, whereas IDCW refers to income distribution cum capital withdrawal, where distributions may be made when declared by the fund.
An IDCW distribution should not automatically be interpreted as additional return because the NAV can adjust following a distribution.
Investors should understand the tax treatment applicable at the time of investment and redemption.
SIP and Lump-Sum Investment
Investors can invest in mutual funds through different methods.
Systematic Investment Plan (SIP)
An SIP allows investors to invest a predetermined amount at regular intervals.
For example, an investor might invest a fixed amount every month instead of investing the entire amount at once.
Lump-Sum Investment
A lump-sum investment involves investing a larger amount in one transaction.
| Feature | SIP | Lump Sum |
| Investment Pattern | Periodic | One-time |
| Cash Flow | Regular contributions | Larger initial investment |
| Market Timing Risk | Spread across multiple purchases | Greater exposure to entry point |
| Suitable For | Regular income investors | Investors with available capital |
Neither method automatically guarantees higher returns.
How to Choose a Mutual Fund Category
Before selecting a scheme from a mutual fund list, consider the following sequence:
Step 1: Define the Financial Goal
Determine if the purpose of the investment is retirement, education, wealth creation, a short term requirement, or any other reason.
Step 2: Determine the Time Horizon
A longer investment horizon could potentially enable an investor to look further ahead into categories with higher volatility in the short term, reflecting their risk tolerance.
Step 3: Assess Risk Tolerance
Know your level of comfort with ups and downs in the value of your investment.
Step 4: Select an Appropriate Category
Choose the category based on the investment objective and asset allocation rather than recent returns alone.
Step 5: Compare Schemes
For schemes being compared, consider factors such as costs, fund matrix, risk, how often the scheme does not do well, investment process, etc.
Step 6: Review Regularly
A mutual fund portfolio should be reviewed periodically to ensure that it continues to align with financial goals and risk requirements.
Mutual Fund Categories and Risk
Different categories can have substantially different risk characteristics.
| Category | Broad Risk Consideration |
| Equity | Market volatility can be significant |
| Small Cap | Higher sensitivity to equity-market movements |
| Mid Cap | Significant market-related volatility |
| Large Cap | Equity-market risk, often with exposure to established companies |
| Debt | Interest-rate and credit risks vary |
| Hybrid | Risk depends on equity/debt allocation |
| Index Funds | Market/index risk and tracking difference |
| Sectoral/Thematic | Concentration can increase risk |
Investors should read the scheme-related documents and risk disclosures before investing.
Advantages of Investing Through Mutual Funds
Mutual funds offer several features that can make them useful investment vehicles.
- Diversification: A single scheme can provide exposure to multiple securities.
- Professional Management: Fund managers and investment teams manage the portfolio according to the scheme mandate.
- Accessibility: Investors can generally start with relatively small amounts, depending on the scheme.
- Choice: Investors can choose among equity, debt, hybrid, index, and other categories.
- Systematic Investing: SIPs can help investors invest regularly.
Shares of mutual funds tend to be market dependent investment and may not be traditional guarantee of return 2008 unless the investments have been dually managed under various industry processes and existing regulations.
Mutual Fund Comparison: Common Mistakes to Avoid
When reviewing a list of mutual funds, investors should avoid making decisions solely on the basis of:
- One-year returns
- Recent market performance
- Popularity
- A fund’s NAV
- Short-term rankings
- Past performance without considering risk
It’s not always cheaper to buy a fund with a lower NAV than a fund with a higher NAV. A mutual fund with a higher NAV isn’t necessarily over-value, either.
In considering comparisons, the characteristics to take into account include the scheme’s category, portfolio, charges, level of risk, the scheme’s investment objective, and investment horizon.
category, portfolio, charges, level of risk, the scheme’s investment objective and investment horizon.
Conclusion
An exhaustive list of mutual funds can give a better idea of the kind of investments that are available in the market. There are equity funds, debt funds, hybrid schemes, index schemes, solution-oriented funds, and many more.
Before selecting a mutual fund scheme, investors need to identify their goal, investment tenure, risk appetite, and liquidity requirements from a list of mutual fund schemes. By putting forth schemes from the right category and comparing the many funds on parameters like portfolio/asset allocation, performance in the past, fund expenses, risk and style of investing would be useful.
Most importantly, remember that past performance is not indicative of future performance. When you invest in a mutual fund, reading the scheme’s offer documents and understanding the risks and costs involved is an integral part of mutual fund investing.