Category: Mutual Funds

What are Value Funds? Value funds follow value investment strategy during their stock selection. This strategy involves identifying stock pricing anomalies caused by temporary setbacks to the otherwise fundamentally strong companies. Sometimes the prices of these stocks are down simply because these stocks or the sectors they belong to are currently out of favor. These…

  What are Ultra Short Duration Funds? Ultra short duration funds, earlier known as ultra short term funds, are open ended debt funds, which primarily invest in bonds, money market instruments and other fixed income instruments of short maturities. According to SEBI guidelines, the Macaulay duration of the portfolios of ultra short duration funds have...

What are Corporate Bond Funds Corporate bond funds are open-ended debt mutual funds, which invest primarily in highly rated corporate bonds. As per SEBI guidelines, corporate bond funds have to invest at least 80% of their total assets in corporate bonds rated AA+ and above. Why Invest in Corporate Bond Funds Lower credit risk due...

  What are Focused Funds? Focused funds are those equity mutual funds that follow a concentrated investment strategy focusing on a limited number of stocks. According to the SEBI guidelines, focused funds can invest in up to 30 stocks with at least 65% of their fund portfolio invested in equities and equity-related instruments. SEBI guidelines…

What are Midcap Funds Midcap funds are equity mutual funds, which have to invest at least 65% of their total assets in midcap companies. According to the SEBI regulations, midcap companies are those ranked from 101st to 250th in terms of full market capitalisation. Why Invest in Midcap Funds Midcap companies have the potential of...

What is a Small Cap Fund? Small cap funds are equity funds, which invest at least 65% of their assets in equity and equity related investments of small cap companies. According to the SEBI regulations, small cap companies are those ranked below top 250th companies in terms of market capitalization. Why Invest in Small Cap…

What are ELSS Funds? Equity Linked Saving Schemes (ELSS), popularly known as tax saving mutual funds, are equity-oriented mutual funds. As per the SEBI regulations, ELSS funds have to invest at least 80% of their corpus in equity or equity related instruments. These funds come with a lock in period of 3 years and qualify…

What are Aggressive Hybrid Funds? Aggressive hybrid funds are open-ended hybrid schemes investing predominantly in equity and equity-related instruments with smaller allocation to debt and money market instruments. According to the SEBI guidelines, aggressive hybrid funds have to invest at least 65-80% of their total assets in equity and equity related instruments and 20-35% in...

What are international mutual funds? International mutual funds are those, which predominantly invest in the equity, equity related instruments and debt securities of companies/entities listed outside India. Many of these funds are actually fund of funds schemes, whose underlying foreign funds invest in foreign markets. Why invest in international mutual funds? Provides access to high...

What are Contra Funds? Contra funds are equity funds, which invest in equities with a contrarian view on the market. Fund managers of these funds bet against prevailing market trends and sentiments. They pick up undervalued but fundamentally sound stocks, ignored by the market, at lower prices to benefit from steep rises in them as...