Different Types of

INVESTMENT FUNDS
1) Mutual Fund
Mutual funds are investment vehicles that
pool money from many investors to invest in a
portfolio of stocks, bonds, or other securities.

They are professionally managed and offer

diversification benefits, making them a popular
choice for many investors.
2) Exchange-Traded Funds
(ETFs)
ETFs are similar to mutual funds, but trade on an
exchange like a stock.

ETFs offer investors the ability to invest in a

diversified portfolio of stocks or bonds with
lower fees than traditional mutual funds.
3) Index Fund
Index funds are a type of mutual fund or ETF that
tracks a specific stock market index, such as the
Nifty 50 or BankNifty.

These funds offer lower costs than actively

managed funds and can provide investors with
a diversified portfolio.
4) Hedge Fund
These are private investment funds that are
typically only available to wealthy investors.

Hedge funds pool capital from a limited

number of wealthy individual investors to
invest in stocks, bonds, commodities, and
derivatives.
5) Bond Fund
Bond funds are a type of mutual fund that invests
in a diversified portfolio of fixed- income
securities such as government bonds, corporate
bonds, or municipal bonds.

They are popular among investors who want to

generate regular income from their
investments.
6) Real Estate Investment
Trusts (REITs)
REITs are a type of investment fund that invests
in real estate properties or mortgages.

Investors can buy shares in a REIT, which

provides them with exposure to the real
estate market and get regular rent, interest,
and property appreciation.
7) Private Equity Fund
A private equity fund pools money from high-
net-worth individuals to make investments in
privately-held companies.

They are managed by professional fund

managers who seek to acquire companies with
growth potential or undervalued assets, with
the goal of improving their operations and
profitability before selling them for a profit.
8) Money Market Funds
Money market funds are a type of mutual fund
that invests in short-term, low-risk debt
securities, such as T- bills or commercial paper.

Money market funds are popular among

investors who want to preserve capital and
earn a modest return, without taking on
significant risk.
9) Fund of Funds
Fund of funds invest in other mutual funds or
exchange-traded funds (ETFs) and provide
investors with exposure to a diversified portfolio
of funds.

FoFs can offer a convenient way to invest in

multiple funds with a single investment.
10) Gold Fund
Gold funds invest in gold bullion or gold- related
securities, providing investors with exposure to
the gold market.

These funds can offer a hedge against inflation

and currency fluctuations but also carry the
risk of fluctuations in the gold price.
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Research Credits
Harshal Jamdhade