Different types of mutual funds

Loan Funds: These funds invest primarily in bonds, offering lower returns but also lower risk. Examples include:

Balanced Funds: These funds invest in a mix of stocks and bonds, offering a balance between risk and return.

Money Market Funds: These funds invest in very short-term debt instruments, with the objective of preserving capital and providing high liquidity.

Investing in mutual funds can be a great way to diversify your portfolio and potentially achieve your financial goals. But with so many different types available, navigating the options can feel overwhelming. To help you make informed decisions, let’s go through the details of various mutual fund categories: