All Mutual Funds are divided into 5 broad categories and 57 sub-categories. These categories help in segregating mutual funds according to different segments or themes of mutual funds market. The categories are as follows -
- Commodity - These funds mainly invested in commodities like Gold etc.
- Debt - These funds invest primarily in fixed-income securities such as bonds, securities and treasury bills. These are further divided into 19 sub-categories.
- Equity - These funds primarily invest in stocks/shares or different companies listed in stock market. These are further divided into 23 sub-categories like thematic funds, large cap funds and more.
- Hybrid - Hybrid funds invest in equity and debt and hence are a more balanced option for mutual fund investment. These are further divided into 9 sub-categories such as arbitrage funds, capital protection fund etc.
- Others - These are mostly FoFs or solution oriented funds having 5 sub-categories in it.