Large Cap Funds
Large Cap Mutual Funds are primarily invests in "Blue-chip" companies (large companies). Itmeans well-known industrials, utilities, technology, and financial services companies with largemarket capitalization. Large cap stocks are perceived to be less risky than small and mid capcompanies.
Mid Cap Funds
Mid Cap Mutual Funds are primarily invests in companies with relatively small marketcapitalization. The market capitalization of companies where mid cap mutual funds areinvesting will be smaller than large cap and larger than Small cap companies. Mid caps aregenerally considered more risky than large cap stocks but have a higher return potential.
Small Cap Funds
Small Cap companies are primarily invests in emerging/budding companies. Small caps aregenerally considered as the riskiest fund compared to other two types of funds but it carries theexpectation of higher returns. Small cap funds are subject to greater volatility than those inother asset categories.
International funds are primarily invests in stocks traded on foreign exchanges but purchased inIndia by Indian fund management companies. Apart from the basic risks, international funds aresubject to additional risks such as currency fluctuation, political instability and the potential forilliquid markets.
Sector Funds are investing primarily in specific industry sectors such as technology, financials,health, energy, etc. Sector funds focus their investments on companies involved in a specificindustry sector. Sector Funds involve a greater degree of risk as it doesn’t diversify theportfolio.
Bond funds invest in various types of bonds - issued by corporations, municipalities, and thegovernment of India. Bond mutual funds are designed mostly to provide investors with a steadystream of income versus.