type of schemas in mutual funds

Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. Here's a breakdown of the terms you mentioned, categorized under debt, commodities, hybrid, and equity mutual funds:

Debt Mutual Funds

1. Credit Risk: This refers to the risk of loss due to a borrower's failure to repay a loan or meet contractual obligations. In the context of debt mutual funds, credit risk arises when the fund invests in securities issued by companies or governments that are less likely to meet their financial obligations.

2. Short Duration: Short duration funds invest in fixed-income securities with shorter maturities, typically less than three years. They aim to reduce interest rate risk and may provide more stable returns compared to longer-duration funds.

3. Fixed Maturity: Fixed Maturity Plans (FMPs) are closed-end debt mutual funds that invest in securities with a specific maturity date. These funds typically aim to provide returns appropriate to the level of risk involved, as they invest in fixed-income securities maturing around the same time as the fund itself.

4. Overnight Funds: These funds invest in very short-term instruments with maturities of one day. They mainly invest in government bonds, reverse repos, and other overnight instruments, providing high liquidity and very low risk.

5. Gilt Funds: Gilt funds primarily invest in government securities or bonds issued by the government. Since they are backed by the government, they are considered to have very low credit risk. These funds are sensitive to interest rate changes.

Commodities

1. Gold: Gold mutual funds invest in gold-related instruments, such as gold ETFs or equities of companies involved in gold mining. They typically serve as a hedge against inflation and currency fluctuations.

2. Silver: Similar to gold funds, silver mutual funds invest in silver-related assets, including silver ETFs or mining companies. Silver is often viewed as a precious metal investment and may have different market dynamics than gold.

Hybrid Mutual Funds

1. Aggressive Hybrid: These funds primarily invest in equity (usually between 65-80%) and a smaller portion in debt (20-35%). They aim for high returns by taking more risk through equity investments.

2. Multi-Asset Allocation: These funds invest across various asset classes, including equities, debt, and commodities. They aim to provide diversification and reduce overall portfolio risk.

3. Balanced Hybrid: Balanced hybrid funds aim to maintain a balanced allocation between equity and debt, typically investing around 40-60% in both. They are suitable for investors looking for a mix of growth and stable income.

4. Arbitrage Funds: These funds aim to offer returns by taking advantage of price discrepancies between different markets or securities. They invest in both equity and debt instruments and often have low volatility.

5. Conservative Hybrid: These funds have a larger allocation towards debt (usually 70-80%) and a smaller portion in equity (20-30%). They are suitable for risk-averse investors seeking stable income and moderate growth.

Equity Mutual Funds

1. Small Cap: These funds invest in companies with smaller market capitalizations. They have high growth potential but also carry higher volatility and risks.

2. Multi Cap: Multi-cap funds invest across various market capitalizations, including small, mid, and large-cap stocks. This allows for more flexibility and diversification.

3. Flexi Cap: Similar to multi-cap funds, flexi-cap funds can invest across different capitalization sizes but have the added benefit of completely shifting allocations based on market conditions.

4. Index Funds: These funds aim to replicate the performance of a specific market index (like the S&P 500). They generally have lower fees compared to actively managed funds.

5. Mid Cap: Mid-cap funds invest in medium-sized companies. They often provide a balance of growth potential and risk compared to small-cap and large-cap funds.

6. ELSS (Equity Linked Savings Scheme): These funds invest primarily in equities and offer tax benefits under Section 80C of the Indian Income Tax Act. They have a lock-in period of three years.

7. Thematic Funds: Thematic funds focus on specific themes or sectors, such as infrastructure, technology, or healthcare. They can provide high returns if the particular theme performs well.

8. Large and Mid Cap: These funds invest in a mix of large-cap and mid-cap stocks, aiming to balance stability and growth potential.

9. Value-Oriented: Value funds invest in undervalued stocks that have strong fundamentals but are trading at lower price ratios. The focus is on long-term gains.

10. Sectorial Funds: These funds focus on specific sectors of the economy (e.g., banking, healthcare, etc.) and are more volatile due to their concentrated exposure.

11. International Funds: International mutual funds invest in stocks from markets outside the investor’s home country. They provide exposure to global markets and diversification.

This is a broad overview of various types of mutual funds and their associated terms. Each type of fund has its risks and rewards, making it important for investors to align their choices with their financial goals and risk tolerance