A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. These investors may be retail or institutional in nature.
Mutual funds have advantages and disadvantages compared to direct investing in individual securities. The primary advantages of mutual funds are that they provide economies of scale, a higher level of diversification, they provide liquidity, and they are managed by professional Fund Managers. On the negative side, investors in a mutual fund must pay various fees and expenses.
Primary structures of mutual funds include open-ended funds and closed-ended funds.
Debt Funds
A debt fund is a fund that invests primarily in bonds or other debt securities with the primary objective of income generation and capital preservation.
Equity Funds
Hybrid Funds
Solution Oriented Funds
Other Funds
Other funds include various mutual fund categories like Index Funds and ETFs, each targeting specific investment objectives.