Mutual fund companies have created many funds with different risk categories, returns, and assets.
Many people thought mutual funds were only available for equity investments, but no. Debt mutual funds and hybrid funds are also available.
At the top, mutual funds are a mix of equity and debt investments. Equity mutual funds are usually for long-term investment plans, like above 5 years. And debt mutual funds are for short-term investment plans for below 3 years.
We also have hybrid funds, a combination of equity and debt investments used for medium and long-term plans, basically above 3 years.
To know the type of funds available under equity, debt and hybrid check out my blog.
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