Mutual Fund Basics
Types of Mutual Funds in India
By asset class, structure, objective, risk and geography.
Updated 27 September 2026 · SEBI rules as of 2026
By asset class
Equity, debt, hybrid, other
Mutual Fund BasicsOverview
Mutual funds can be classified in several ways. SEBI’s scheme categorisation defines equity, debt, hybrid, solution-oriented and other (index/ETF/FoF) schemes, and each scheme also has a structure (open-ended, closed-ended, interval) and investment objective.
| Particular | Details |
|---|---|
| By asset class | Equity, debt, hybrid, other |
| By structure | Open-ended, closed-ended, interval |
| By objective | Growth, income, liquidity, tax saving, retirement |
| By management | Active, passive (index/ETF) |
| By geography | Domestic, international, global |
By asset class
| Type | Invests in | Risk | Horizon |
|---|---|---|---|
| Equity | Shares | High | 5+ years |
| Debt | Bonds, money market | Low–moderate | Days to 3+ years |
| Hybrid | Mix | Moderate–high | 3–5 years |
| Gold / silver | ETFs & FoFs | Moderate–high | 5+ years |
By structure
| Structure | Liquidity |
|---|---|
| Open-ended | Buy/sell any business day at NAV |
| Closed-ended | Fixed tenure; listed on exchange |
| Interval | Transactions only during set windows |
By objective
- Growth funds — capital appreciation (equity)
- Income funds — regular income (debt)
- Liquid / money-market funds — parking
- Tax-saving funds — ELSS
- Capital-protection oriented funds — closed-end debt + small equity
- Pension / retirement funds
- Fixed maturity plans
By risk (riskometer)
| Level | Examples |
|---|---|
| Low | Overnight, liquid |
| Low to Moderate | Ultra-short, money market |
| Moderate | Short duration, corporate bond |
| Moderately High | Conservative hybrid, some debt |
| High | Aggressive hybrid, BAF |
| Very High | Equity funds, credit risk, sectoral |
Frequently asked questions
Which type is best?
The one matching your goal and horizon — there is no single best type.
Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Information is educational and may change with SEBI / tax rules — verify with the AMC, AMFI or SEBI. FinancePortal is not an investment adviser.