“Aren’t all Mutual Funds the same? After all, it’s a Mutual Fund, isn’t it?” Asked Gokul. His friend Harish, a Mutual Fund distributor, smiled. He was all too familiar with such a remark coming from many.
A large number of people carry the misconception that all Mutual Funds are the same. There are various types of funds, chief among these are equity funds and debt funds. The difference between the two comes from where the money is invested. While debt funds invest in fixed income securities, equity funds invest predominantly in equity share and related securities. Both equity and fixed income securities have different characteristics that determine how the respective schemes would behave.
Different investors have different requirements. Some need high returns
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