Mutual Funds offer a diverse range of investment options, catering to the varied needs and financial goals of investors. Understanding the different types of Mutual Funds can help investors make informed decisions and tailor their portfolios to match their risk tolerance and objectives. Let’s dive into the primary categories of Mutual Funds and explore their unique features and benefits.

1. Equity or Growth Funds

Equity Funds, often referred to as Growth Funds, are designed to invest primarily in the shares of companies. The main goal of these funds is capital appreciation, making them ideal for investors looking to build wealth over the long term. Equity Funds are characterized by their potential for high returns, albeit with a higher level of risk compared to other fund types.