A mutual fund is a type of investment where a number of people put their money together to buy stocks, bonds, and more. The people who own these investments are called investors. The professionals who invest the money are called fund managers. The investors give their money to the fund managers. who decides what to buy and sell or make the investments. The goal of a mutual fund is to make money for investors.

Investing in mutual funds has numerous advantages, including: - The ability to broaden your investment portfolio, - The potential to earn higher returns than other investments, and - The professional management of your investment.

There are several risks associated with mutual fund investing, including the risk of losing money, market uncertainty, and fraud. Mutual funds are also subject to investment risks, such as the risk of principal loss.

This is a difficult question to answer as there are many factors to consider when determining which mutual fund is the best performer. Some people might look at the overall return of the fund, while others might focus on the risk-adjusted return. Additionally, some people might only consider mutual funds that invest in a specific type of asset, such as stocks or bonds.

Another important factor to consider is the time frame. For example, a fund that performed well in the past year might not be the best choice for someone who is investing for the long term. Additionally, a fund that has a good track record over a longer period of time might be a better choice for someone who is more risk-averse.

In the end, there is no simple response to this query.. The best-performing mutual fund will vary depending on the individual's investment goals and objectives.

There are many different types of mutual funds, including stock funds, bond funds, money market funds, and index funds.

When choosing a mutual fund, you should consider your investment goals, risk level, and the fees associated with the fund.

Mutual funds can be purchased through a broker, a mutual fund company, or a financial advisor.

The tax implications of investing in mutual funds in India can vary depending on the type of fund and the investor's tax bracket. However, in general, mutual fund investments are subject to capital gains tax, which is levied at a rate of 10% on profits earned from the sale of units. For investors in the highest tax bracket, this rate may be increased to 20%. Additionally, mutual fund dividends are taxable at the rate of 15%.

There are a few different types of fees associated with mutual funds in India. The first is the expense ratio, which is a percentage of the fund's assets that is used to cover the fund's operating expenses. The second is the exit load, which is a fee charged when you redeem (sell) your shares in the fund. Lastly, there is the STT (Securities Transaction Tax), which is a tax levied on the purchase and sale of securities.

Here are some key differences between mutual funds and ETFs:

• ETFs are passively managed, whereas mutual funds are actively managed.
• Mutual funds are priced once per day, while ETFs are priced throughout the day.
• Mutual funds typically have a higher expense ratio than ETFs.

Net Asset Value (NAV) is the market value of a fund's assets minus the fund's liabilities. NAV is calculated by taking the total market value of all the securities in the fund's portfolio and subtracting any outstanding liabilities. The NAV of the fund is the resultant number.

To calculate a fund's NAV, you need to know the market value of the securities in the fund's portfolio and the outstanding liabilities. The market value of a security is simply the price of the security in the market. For example, if a stock is trading at 100 Rs. per share, the market value of the stock is 100 Rs.

Outstanding liabilities are any debts or obligations that the fund owes. For example, if a fund has borrowed Rs.10 million from a bank, the outstanding liability is Rs.10 million.

To calculate a fund's NAV, simply take the market value of all the securities in the fund's portfolio and subtract the outstanding liabilities. For example, if a fund has Rs 100 million in assets and Rs.10 million in liabilities, the fund's NAV is Rs.90 million.

In general, mutual funds are quite liquid, meaning that you can buy and sell them fairly easily and without incurring too much in terms of fees or penalties. However, there are some caveats to this. First, if you are looking to sell your mutual fund shares, you may have to wait a few days for the transaction to go through. Second, you may incur a small fee when you sell your shares, depending on the fund. Finally, if you are looking to cash out your mutual fund investment completely, you may have to pay a redemption fee.

When it comes to mutual funds, there is no hard and fast rule about when to sell. However, there are a few general guidelines that can help you make the decision about when to sell your mutual funds. First, you should consider selling your mutual funds when they are no longer meeting your investment goals. If your goals have changed or if the fund is no longer performing well, it may be time to sell. Second, you should also consider selling your mutual funds if you need the money for another purpose. If you need to access the cash in your investment account, selling your mutual funds may be the best option. Finally, you may also want to sell your mutual funds if you are no longer comfortable with the level of risk. If the fund has become too risky for your taste, selling it may help you sleep better at night. Ultimately, the decision about when to sell your mutual funds is up to you. However, these general guidelines can help you make the best decision for your situation.

The structure of a mutual fund can be broken down into three main components:

• The investment portfolio- It is the pool of securities that the fund invests in.
• The fund's expenses- are the fees charged by the fund manager for their services, as well as the other costs associated with running the fund.
• The fund's distribution system.- This is the method by which the fund's assets are distributed to its investors

A fund manager is responsible for managing a mutual fund's portfolio and making investment decisions on behalf of the investors. It’s his responsibility to try to maximize the return on investment for the investors while also managing the risks involved.

The total expense ratio (TER) is the percentage of your investment that a mutual fund company charges to cover the fund's total expenses, including management fees, administrative fees, operating expenses, and other fees.

A mutual fund load is a commission charged by a broker when an investor buys or sells shares in a mutual fund. Most mutual funds are sold with loads, which can either be front-end loads, back-end loads, or level loads.

• Front-end loads are charged when an investor buys shares.
• Back-end loads are charged when an investor sells shares.
• Level loads are charged both when an investor buys and sells shares.

A direct plan is a type of mutual fund in which the investor directly buys units from the fund house, without the help of a middleman or broker. This means that the investor does not have to pay any commission or fees to anyone.

A mutual fund benchmark is a standard against which the performance of a mutual fund is measured. The most common benchmarks used for mutual funds are stock market indexes, such as the S&P 500. The performance of a mutual fund is typically compared to its benchmark to give investors an idea of how the fund is performing.

A load mutual fund charges a fee, typically a sales commission, when you buy or sell shares. A no-load mutual fund does not charge a fee.

There are different ways to categorize funds, but the most common is by asset class. The three main asset classes are equities, fixed income, and cash & equivalents. There are distinct risk and return characteristics for each asset class. For example, equities are typically more volatile than fixed income, but they also have the potential for higher returns. Cash and equivalents are the least volatile but also have the lowest returns. Investors can also categorize funds by investment objective. For example, some funds may be focused on income generation, while others may be geared towards capital appreciation. There are also funds that seek to preserve capital or provide stability in a portfolio. Ultimately, the decision of how to categorize funds depends on the investor's individual goals and objectives.

There are two main types of investment funds available to investors – equity funds and debt funds. Equity funds are invested primarily in stocks, while debt funds are invested in bonds and other fixed-income securities. Both types of funds come with different risks and tax implications. Equity funds are generally subject to higher capital gains taxes than debt funds. This is because stocks are considered a higher-risk investment than bonds and other fixed-income securities. However, there are some tax-advantaged equity funds that can help investors minimize their tax liability. Debt funds, on the other hand, are typically taxed at lower rates than equity funds. This is because the interest payments on bonds and other fixed-income securities are considered taxable income. However, there are some types of debt funds that may be subject to higher taxes, such as high-yield bond funds.

TRI Index is a tool used by investors to measure the total return of an investment in a company. It is calculated by adding the net income of the company to the dividends paid to shareholders and then dividing it by the number of shares outstanding. The TRI index is used to compare the performance of different companies, and it is also a benchmark against which the performance of a company's stock is measured. The difference between TRI and PRI Benchmark is that TRI includes the net income of the company in its calculation, while PRI does not. This makes TRI a more accurate measure of a company's true return on investment.

In India, the cut-off time for mutual funds is usually 3 pm IST. This means that if you want to buy or sell units of a mutual fund, you will need to do so before 3 pm IST. After 3 pm IST, the fund's NAV (net asset value) will be calculated and you will not be able to trade until the next business day.

When you redeem your mutual fund units, the fund house will usually take two business days to process the transaction and transfer the redemption proceeds to your bank account. However, some fund houses may take up to five business days to process redemptions. If you need the redemption proceeds urgently, you can ask the fund house for a 'special redemption' request, which will be processed within one business day.

Real estate mutual funds are funds that invest in real estate-related securities. These funds can be used to invest in a variety of real estate-related assets, including property, mortgage-backed securities, and real estate investment trusts (REITs). Real estate mutual funds can offer investors exposure to a wide range of real estate asset types and can be a good way to diversify a portfolio.

A mutual fund's performance is the total return on the investment over time, including both capital gains and dividends. The mutual fund's performance is measured by its net asset value (NAV), which is the value of all the securities in the fund minus any fees and expenses.

Growth stocks are those whose value is anticipated to rise over time.. They're usually associated with companies that are young and rapidly growing. While these stocks can offer high returns, they're also more volatile and risky. On the other side, Dividend stocks are those that regularly pay out dividends. These dividends can provide a steady income stream, even if the stock price itself doesn't increase. However, dividend stocks tend to be more mature companies, and the dividend payments may not be as high as growth stocks. Dividend reinvestment is a third option that combines features of both growth and dividend stocks. With this option, investors receive dividend payments which are then used to purchase additional shares of the stock. This can help to compound returns, but it also means that the investor is more invested in the stock and may be more susceptible to losses if the price decreases.

NFO stands for New Fund Offer. It is the launch of a new mutual fund scheme by an asset management company (AMC). The scheme is offered to the public for a limited period, usually 15-30 days, during which investors can subscribe to the scheme. The key benefits of investing in an NFO are that it gives investors the opportunity to participate in the growth of a new fund from its inception, and also to avail of tax benefits, if any, that may be available at the time of launch. However, it is important to note that there is no guarantee of success for a new fund, and investors should conduct their own due diligence before investing.

Closed-ended mutual funds are those that issue a limited number of shares to investors, which are then traded on a stock exchange. Because the number of shares is limited, the fund's price is determined by supply and demand. Closed-ended funds typically charge a front-end load, which is a sales charge that is paid when the shares are purchased. They also may charge a back-end load, which is a redemption fee that is paid when the shares are sold.

Open-ended mutual funds do not have a set number of shares, so they can issue and redeem shares as needed. This flexibility can be advantageous for investors who want to be able to cash out their investments quickly. However, it also means that the fund's size can fluctuate, which can lead to less predictable returns.

An equity mutual fund is a type of mutual fund that invests in stocks. Mutual equity funds may be passively or actively managed.. Actively managed equity mutual funds are managed by a team of fund managers who make decisions about which stocks to buy and sell. Passively managed equity mutual funds are index funds that track a specific index, such as the S&P 500. Equity mutual funds typically have higher investment risks than other types of mutual funds, but they also have the potential for higher returns.

There are a few key differences between investing in stocks directly and investing in equity mutual funds. When you invest in stocks directly, you are buying a piece of a company and becoming a shareholder. This gives you a direct say in how the company is run and you may receive dividends. With equity mutual funds, you are pooling your money with other investors and the fund manager makes investment decisions on your behalf. The fund may invest in a mix of stocks, bonds, and other securities. Equity mutual funds tend to be more diversified, which can provide greater protection against losses in any one particular stock.

There are four main types of equity mutual funds: Large-cap funds- They invest in blue-chip companies with large market capitalizations. These businesses often have an excellent track record and are well-established.. They are often leaders in their industries and have a strong presence in the Indian market. Mid-cap funds- They invest in companies with medium-sized market capitalizations. These companies are typically growing businesses with good potential. They may be newer companies or companies that are expanding into new markets. Small-cap funds- They invest in small companies with small market capitalizations. These companies are typically newer businesses with high growth potential. They may be niche businesses or companies that are just starting to expand into new markets. Sector funds- They invest in companies that operate in a specific sector. These funds allow investors to target a particular industry or group of industries.

In India, equity funds are taxed according to the Securities and Exchange Board of India (SEBI) regulations. Short-term gains from equity funds are taxed at 15%, while long-term gains are taxed at 10%. However, there are certain conditions that must be met in order for the long-term gains tax to apply, such as holding the investment for at least 12 months. Dividends from equity funds are also taxed at 10%.

A debt mutual fund is a type of investment fund that invests in debt instruments, such as bonds, treasury bills, commercial paper and other fixed-income instruments. Debt mutual funds are typically less risky than equity mutual funds, as they are not subject to the same level of market fluctuations. However, they may still offer potential for capital appreciation and income generation. Many debt mutual funds offer investors the ability to choose from a variety of different investment strategies, such as short-term, long-term, or intermediate-term.

There are a variety of debt mutual funds available in India, each with its own investment objective and strategy. Some popular types of debt mutual funds are: Short-term funds- They are typically focused on investments with shorter maturities, such as Treasury bills, commercial paper, and certificates of deposit. These funds typically offer lower returns than other types of debt mutual funds, but they also carry less risk. Long-term funds- They invest in a variety of debt instruments with longer maturities, such as government bonds and corporate bonds. These funds typically offer higher returns than short-term funds, but they also carry more risk. Gilt funds - They invest primarily in government securities, such as government bonds. These funds offer investors a number of benefits, including the safety of the principal and the stability of returns. However, gilt funds also carry the risk of interest rate changes. Income funds- They invest in a variety of debt instruments, such as corporate bonds and government bonds. These funds seek to provide investors with a steady stream of income, typically through regular distributions of interest payments. Income funds typically carry more risk than other types of debt mutual funds, but they also have the potential for higher returns.

Debt funds are promoted as being a safe investment option, but are they really? While debt funds may be less volatile than equity funds, they still come with risks. For example, interest rates can affect the value of debt funds, as can the creditworthiness of the issuers of the underlying securities. Therefore, while debt funds may be less risky than equity funds, they are not risk-free. Investors should always perform due diligence before investing in any type of fund.

There are several key differences between debt funds and bank fixed deposits. 1. Debt funds are subject to market risk, meaning that the value of the investments can go up or down depending on market conditions. Bank fixed deposits, on the other hand, are not subject to market risk because the interest rate is fixed. 2. Debt funds typically have a higher return than bank fixed deposits. This is because debt instruments typically offer higher interest rates than bank deposits. 3. Debt funds are more liquid than bank fixed-deposits. This means that you can withdraw your money from a debt fund at any time, but you may be subject to penalties if you withdraw your money from a bank-fixed deposit before the maturity date. 4. Debt funds are subject to credit risk, meaning that the issuer of the debt instrument could default on the payments. Bank fixed deposits are not subject to credit risk because the bank is obligated to return your deposit, with interest, even if it becomes insolvent. 5. Debt funds may be subject to taxation, while bank fixed- deposits are not. This is because interest income from debt instruments is typically taxed at your marginal tax rate, while interest income from bank deposits is not.

Debt funds are taxed in India in a similar way to other investment vehicles such as stocks and mutual funds. The returns on debt funds are taxed at the applicable rate for the investor's tax bracket. For example, if an investor is in the 30% tax bracket, the returns on debt funds would be taxed at 30%. Capital gains on debt funds are taxed at 10% if the investment is held for more than 3 years, and at 20% if the investment is held for less than 3 years.

Dividend Distribution Tax (DDT) is a tax levied by the government on the dividend income of investors in Mutual funds. DDT is charged at a rate of 10% on the total dividend income received by an investor in a financial year. The tax is deducted by the Mutual fund company at the time of dividend payout..

Dynamic debt funds are a type of mutual fund that invests in a portfolio of fixed-income securities. The fund's portfolio is actively managed, and the fund's managers seek to generate returns by taking advantage of opportunities in the fixed-income markets. The fund's strategy is designed to provide investors with exposure to a variety of fixed-income securities, while also managing the fund's risk.

Gilt funds are mutual funds that invest in government securities. These funds provide investors with a relatively safe and stable investment option, as the underlying securities are backed by the government. Additionally, gilt funds offer the potential for attractive returns, as government securities typically offer higher yields than other types of fixed-income securities. Whether or not to invest in gilt funds depends on the individual investor's goals and risk tolerance. For conservative investors who are looking for a safe investment option, gilt funds may be a good choice. However, investors should be aware that gilt funds are subject to interest rate risk, as the value of the underlying securities will fluctuate in response to changes in interest rates. Therefore, gilt funds may not be suitable for all investors.

Floating rate debt funds are mutual fund schemes that invest in debt instruments with floating interest rates. The interest rates on these instruments are reset at regular intervals, typically every 3 to 6 months. This means that the interest income from these funds is not fixed, but can go up or down depending on changes in interest rates. Floating-rate debt funds can be a good investment option for investors who are looking for relatively higher returns than fixed-income instruments but with slightly higher risk. These funds can be particularly useful in a rising interest rate environment, as the returns from these funds are not as sensitive to interest rate changes as other debt funds. However, it is important to remember that floating-rate debt funds are still debt funds, and as such, they are subject to credit risk. This means that there is a risk that the issuers of the debt instruments in which these funds invest may default on their obligations. Therefore, before investing in any floating-rate debt fund, it is important to research the fund and its holdings carefully to ensure that you are comfortable with the level of risk involved.

Floater debt is a type of debt that fluctuates with market interest rates. Dynamic debt is a type of debt that changes over time based on the borrower's ability to repay the debt.

In order to raise capital, businesses issue corporate bonds. They typically have a higher interest rate than other debt instruments, making them more attractive to investors seeking income. However, corporate bonds are also riskier, as there is a greater chance that the issuing company will default on the loan.
Corporate FDs are issued by banks and typically have a lower interest rate than corporate bonds. They are generally considered to be safer investments, as banks are less likely to default on their loans than companies. However, corporate FDs typically have shorter terms than bonds, so investors may not receive as much income from them.
Debt mutual funds are investment vehicles that invest in a variety of debt instruments, including corporate bonds and corporate FDs. Debt mutual funds can offer investors a higher level of diversification and potential income than investing in a single debt instrument. However, they also carry more risk, as the performance of the fund depends on the underlying investments.

A Liquid Category fund is a type of mutual fund that invests in a variety of asset classes, including stocks, bonds, and cash. The fund is designed to provide investors with a high level of liquidity, meaning that they can easily sell their shares for cash. Liquid Category funds are typically less volatile than other types of mutual funds, making them a good choice for investors who are looking for a stable investment.

When it comes to choosing between a liquid fund and a savings bank account,it really depends on what your financial goals are. If you're looking for a place to park your money for the short-term and easy access to your cash is a priority, then a savings account is likely the better option. However, if you're looking to grow your money over time and you're comfortable with some risk, then a liquid fund may be a better choice.
Liquid funds are a type of mutual fund that invests in short-term debt instruments, such as commercial paper, treasury bills, and certificates of deposit. Because of the nature of the investments, liquid funds generally have a lower risk than other types of mutual funds. They also frequently have smaller returns, though.
Savings bank accounts, on the other hand, are a safe place to store your money. Your money is FDIC insured and you can access your cash anytime you need it. However, savings accounts typically offer very low-interest rates, so your money may not grow as much as it would in a liquid fund.

Hybrid funds are a type of mutual fund that invests in both stocks and bonds. This provides the investor with diversification and the potential for higher returns than if they had invested in just stocks or just bonds. Hybrid funds also tend to be less volatile than stock funds, which makes them a good choice for investors who are looking for stability.

Hybrid funds are taxed according to their asset allocation.

● Equity-oriented hybrid funds are taxed at 15%
● Debt-oriented hybrid funds are taxed at the applicable slab rate.
● Short-term capital gains on equity-oriented hybrid funds are taxed at 10%.
● Long-term capital gains on equity-oriented hybrid funds are taxed at 20% with indexation.

Aggressive hybrid funds are mutual funds that invest in both stocks and bonds. They are considered to be more aggressive than other types of funds because they have a higher percentage of their assets invested in stocks. This higher percentage means that these funds have the potential to provide higher returns than other types of funds, but it also means that they are more volatile and are subject to greater losses in a down market.

Conservative hybrid funds are a type of investment fund that combines aspects of both equity and debt funds. They are typically less risky than pure equity funds, but more risky than pure debt funds.
Conservative hybrid funds typically invest in a mix of stocks and bonds. The exact mix will depend on the specific fund, but the goal is to provide a balance between growth and stability. These funds are a good choice for investors who want to participate in the stock market but are not comfortable with the volatility of pure equity funds.

When it comes to saving money, there are a few different options available to choose from. One option is to invest in a conservative hybrid fund. Another option is to open a MIS account with a bank. And lastly, you could also choose to invest in a bank fixed deposit.
So, what's the difference between these three options?
● A sort of mutual fund that invests in both equities and bonds is called a conservative hybrid fund.
● MIS accounts are bank accounts that offer interest on your deposited funds.
● Bank fixed deposits are a type of investment where you deposit money for a set period of time and earn interest on that deposited amount.

So, which one should you choose? That really depends on your financial goals and risk tolerance.
● If you're looking for stability and low risk, then a bank fixed deposit might be the best option for you.
● If you're looking for potentially higher returns, but are willing to accept more risk, then a conservative hybrid fund could be a good choice.
● If you're looking for a mix of stability and potential returns, then a MIS account could be the right option.

Arbitrage funds are a type of mutual fund that seeks to take advantage of price discrepancies in the market. They do this by simultaneously buying and selling securities in order to profit from the difference in price. Arbitrage funds can be a good way to diversify a portfolio and can provide a steadier return than other types of investments.

Arbitrage funds are those which invest in both equity and debt instruments and benefit from the price differential between the two.
On the other hand, liquid funds are those which invest only in debt instruments and are highly liquid in nature.

Thematic funds, as the name suggests are the investment made on a particular theme or sector, or industry. It would turn out to be a profitable investment when the market performance of the organization is good. Thematic fund managers work hard to put such value on investors who loves taking a risk.

Sector funds are broadly classified as

● Real estate funds- investors to participate in the real estate market
● Utility funds- invests in well-performing companies & offer steady dividends
● Natural resource funds- investments in oil and natural gas, energy, forestry, and timber related industry.
● Technology funds- investment exposure to the tech sector
● Financial funds- invest in companies like fintech, banking, insurance, and accounting firms.
● Communication funds- includes telecommunication sector and internet-related companies
● Healthcare funds- covers pharmaceutical companies, path lab chains, etc
● Precious metals funds- investment in precious metals like gold, platinum, silver, copper, and palladium.

ETFs, or exchange-traded funds, are a grouping of securities such as bonds, stocks, money market instruments, and so on that often track the performance of an underlying asset. ETFs are merely a group of different ways to invest. They blend the benefits of two well-known treasury securities: mutual funds and securities.
ETF funds are similar to mutual funds in terms of structure, regulation, and management. Furthermore, like mutual funds, they are a pooled investment vehicle that offers diversification into various asset classes such as stocks, commodities, bonds, currencies, options, or a combination of these. Furthermore, they, like stocks, can be traded on stock exchanges. Stocks traded on stock exchanges.

ETFs are something that can be bought and traded like a stock. They are easy to operate as well. The most common 6 types of ETFs are

● ETFs in bonds
● ETFs in stocks
● ETFs in specific industries
● ETFs in commodities
● ETFs in the forex market
● Hybrid ETFs

An Index Fund is one in which funds are invested in stocks that accurately represent a stock market index, for instance, the NSE Nifty or the BSE Sensex. An index fund's holdings are created on well-defined factors and don't rely on a financial advisor or expert team to decide which stocks to invest in. This significantly decreases the expenses connected with managing these funds, leading to reduced expense ratios.

Gold traded ETFs (exchange-traded funds) are the units of physical gold in paper or dematerialized form. One unit of gold ETF is equal to 1 gram of gold and it is backed up with the same physical gold purity
Overall buying a gold ETF means purchasing gold in electronic form. It can be bought and traded like stocks. Trading of gold ETFs would be carried out through a Demat account and broker. Hence it is a more advanced and easy way to purchase gold.

Physical bonds are a superior bargain for long-term gold accumulation due to their low fees, superior returns, and favorable tax treatment at maturity. They are available for purchase as soon as their primary issues are released. Investors unfamiliar with gold prices are having difficulty selecting the appropriate bond series at this time due to a lack of liquidity in the secondary market.
Gold ETFs on the other hand are a good option for making monthly payments like a SIP in the short term. This makes sense if you use gold ETFs as an aspect of your portfolio allocation strategy.

Gold saving funds are a simple mutual fund investment that invests in gold ETFs instead of regular ones. It’s an organized investment plan for someone new to the world of investments. They do not directly go into gold but indirectly through gold ETFs. However, since it's gold ETFs, they have higher charges.

ELSS also known as a tax saving scheme is a type of mutual fund in which the major portion of their corpus is into equity or equity-related instruments. They provide tax exemption up to 1,50,000 Rs from your annual taxable income under section 80C of the income tax act.
This equity-oriented scheme has a mandatory lock-in period of 3 years and the income earned from the tenure is termed as long-term capital gain and will be taxed for 10%.

ETFs are other portfolios like mutual funds that majorly follow an index they invest directly in stocks, bonds, and other securities. It’s a more transparent form of investment with high liquidity in cash. The price of an ETF is comparatively cheap and the selling price would be decided based on the market price. Different ETFs have different taxation.
FOF on the other hand is a collection of mutual funds. They invest in other mutual funds based on risk tolerance and the objective of the investment. Overlapping of the asset class instruments is highly possible with this and it has less liquidity scope as it is an open-ended instrument in India. The cost is a bit on the higher side than ETF due to multilayer fees which are taxed similarly to debt funds.

Fund of funds is a mutual fund scheme that invests in multiple other units of mutual funds rather than investing in stocks, bonds, and securities. It provides diversification in their portfolio for the investors. It can be invested both in domestic and abroad mutual fund markets. It’s otherwise termed as a multi-manager investment. It is believed by experts that it is more suitable for small investors who want to gain access to assets of a different class.
Depending on the asset class and region the fund of funds are classified as
● Gold funds
● Debt oriented funds
● Equity oriented funds
● Overseas funds

The main difference between a fund of funds and other mutual funds is that a fund of funds invests in other mutual funds, while most other mutual funds invest directly in stocks, bonds, or other securities. This difference can make a fund of funds a more diversified investment than other mutual funds.

Capital protection funds are close-ended hybrid funds that create a portfolio of debt instruments & equity derivatives. This portfolio is structured for the protection of capital and it’s rated by a credit rating agency with a review every quarter. Dividing into 3 components the debt component invested in an instrument with a high-grade rating. The 2nd component that is bought by investors is invested in debt instruments that are expected to mature on par with capital value. The rest of it is invested in equity derivates that derive high returns. Conservative hybrid funds on the other hand are 75-90% invested in debt and money market securities. And the asset allocation in equity would contribute around 10-25%. The debt portion of these funds generates stable income as a major portion is invested in low-risk assets.
Thus conservative funds are stable ones with good returns.

Fixed maturity plans, A fixed tenure mutual fund scheme, are closed-end debt funds having a fixed maturity period. These are not available for continuous subscriptions and would have a specific opening and closing date specifically.

FMPs do not have guaranteed returns, but have the advantage over post-tax returns.than fixed deposits.
FMPs are better in terms of high returns. They earn high in terms of taxation as it is shielded by indexation for long-term capital gains.
Fixed deposits on the other hand are more of a liquid form of investment. It’s true that they are in safe mode with assured returns. But FMPs offer a relatively better choice when it comes to taxpayers.
Returns- As said above FDs come with assured returns with fixed interest rates. But in the case of FMPs it is based on the market you will get the benefits.
Liquidity- During the case of an emergency when you need cash FMPs are on the right side as the money is locked in the investment and only you are allowed to trade your units before the maturity period. On the other hand, FDs are more liquid and you can withdraw before paying some penalty to the bank.
Taxation- The interest earned on FDs is taxed based on the personal income tax slab. But FMPs on the other hand arehaving capital gains after 3 years termed as long-term gains and taxed 20% with indexation benefits.
Risk- FMPs are market linked and are prone to credit risk on any of the underlying securities they are invested in. Thus, you need to be aware of credit quality before investing, whereas in the case of FDs, credit liability is limited to the bank.

Mutual funds that are invested in stocks that are outside the country on international markets are known as international or global funds. Unlike domestic stocks, this type of investment potentially gives a large number of securities.
This kind of investment assists in taking the advantage of accessing the global economy. It is very important to understand international or global funds' pros and cons before investing in them.

Equity funds that are primarily invested in the stocks of companies that are listed outside India are regarded as international mutual funds. Even though it involves risk, these investments provide diversification in your investment portfolio and provide better returns.
The different types of international funds are:
- Regional funds- Fund type that is invested in companies of the specific regions that are emerging markets like the US, China, etc
- Global funds- Global funds are the ones that invest in companies around the globe. It is suitable for investors who wish to take advantage of global investment securities without concentrating on a single area.
- Sectoral and thematic funds- The international fund that invests in stocks of foreign companies of a specific area or theme. Some common sectors are oil, gas, pharma, mining, real estate, mining, technology, etc.

A consolidated account statement (CAS) is a list of all of your investments, including those in direct equity, bonds, and mutual funds. It records all of your monthly purchases and securities in your Dematerialised or Demat account. It will be issued on a monthly basis on or before the 15th of each month to all the investors whose investments would be tracked with their valid PAN no. Additionally, CAS will be sent via email if any of the consolidated folios have an email address or to the first unit holder's email address according to KYC records.

Financial planning for mutual funds can be a complex process, but there are some basic steps that can help make it easier.

1. You need to understand your investment goals and objectives.
- What are you looking to achieve with your investment?
- Do you wish to make money from your investments or gradually increase your wealth?

2. Once you know your goals, you can begin to research different types of mutual funds that align with your objectives.
- There are many different types of mutual funds available, so it's important to select the right ones for your portfolio.
- Consider factors such as your risk tolerance, investment timeline, and goals when making your decisions.

3. It's also important to diversify your investments, which means investing in a variety of different types of mutual funds.
This can help reduce risk and improve your chances of achieving your investment goals.

4. Once you've selected the right mutual funds for your portfolio, you need to monitor your investments and make sure they are performing as you expect.

5. Review your portfolio frequently, and make any improvements. This will help ensure that your investments are on track and help you reach your financial goals.