A mutual fund is a professionally managed financial vehicle made up of a pool of money collected from many investors, to invest in securities like stocks, bonds, money market instruments and other assets.

Portfolio is structured and maintained to match the investment objectives in its prospectus. Examples of Investment objectives are:

• Overnight fund: The Scheme intends to provide reasonable income along with high liquidity by investing in overnight securities having a maturity of one business day.
• Equity fund: To generate capital appreciation/income from a portfolio, predominantly invested in equity and equity related instruments.
• Hybrid fund: Objective of the scheme is to generate long term capital appreciation by investing in equity and equity related securities of companies across market capitalization spectrum. The fund also invests in debt and money market instruments with a view to generate regular income.
• Long duration fund: Objective of the scheme is to generate steady stream of income through investment in fixed income securities.

Risk-Return-Liquidity is the important factor that should be considered before investing. SEBI has provided Riskometer that can be used as one of the indicators, to understand the risk appetite.