What are <span title="equity,debt,bond,balance,MIP">equity,debt,bond,balance,...</span> Mutual Funds?

Question

What are equity,debt,bond,balance,... Mutual Funds?

Answer 1

Equity funds invest primarily in stocks. Debt/bond funds invest in bonds and debentures of various issuers such as government (federal, state/provincial, municipal) and corporations. Balanced funds strike a &#039;balance&#039; between equities (stocks) and debt securities such as bonds, debentures, mortgage-backed securities, etc. It is quite common for the ratio to swing 60/40 either way (e.g. 60% equity 40% fixed income or the other way around).

You may get benefit of the articles on mutual funds fundamentals at Mutual Funds India. Click the link below.

I hope this helps!