Mutual funds are professionally managed investment schemes by Asset Management Companies (AMCs) that allow a group of people to pool their money to build a huge corpus. AMCs then employ Fund Managers, who are financial experts, to build a portfolio by investing the corpus in stocks, bonds and other securities. AMCs utilize Fund Managers to create different types of funds across the risk–return spectrum (also called the risk–return trade-off) to cater to the varying financial needs of investors.

Why invest in mutual funds?

Types of Mutual Funds

Mutual funds are divided into several categories, based on the kinds of securities invested in, the investment objectives, and the type of returns they seek. Let’s take a look at some of the different types of Mutual Funds -

They also have a very handy calculator that will help you make the right decisions while investing. Depending on your financial needs, it will help you take the right decisions on your investment journey. Your needs can be varied – and can include anything from a family vacation, child’s education, down payments for a new home to retirement corpuses. The SIP calculator will then help you decide how much you would need to start saving per month. You can log into Citibank Online or your Citi Mobile App today and explore the ‘Easy Investing’ option to begin investing.

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