Question

What Is Mutual Fund ? What Is Safest Type Of Fund ?

Answer 1

Answer:

The safest type of mutual funds are debt funds. They invest in debt instruments such bonds and debentures. The risk associated with them is much lesser when compared to equity mutual funds as they don't invest in the share market.

7 common types of mutual funds

Money market funds. These funds invest in short-term fixed income securities such as government bonds, treasury bills, bankers' acceptances, commercial paper and certificates of deposit. ...

Fixed income funds. ...

Equity funds. ...

Balanced funds. ...

Index funds. ...

Specialty funds. ...

Fund-of-funds.