New Delhi, July 24 -- A mutual fund offers investors access to a professionally managed portfolio of securities. Since investors have different financial goals, investment horizons, and risk preferences, there are various types of mutual fund schemes designed to cater to different investment objectives.

Understanding these categories can help investors make informed decisions when considering a mutual fund investment.

What is a Mutual Fund?

A mutual fund pools money from multiple investors and invests it in a portfolio of securities based on the investment objective of a particular scheme. Depending on the scheme, the portfolio may include equity shares, debt instruments, government securities, money market instruments, or a combinatio...