Bagging high returns with minimum risk exposure is what most investors carve for. To address this investor demand, there are several products in the mutual fund market and arbitrage fund is one of the better-known investment options, with the lowest risk exposure.

Post SEBI’s circular, the hybrid schemes have been categorised under 6 subcategories. These categories have different approaches and investment styles. Let's look at how these categories are defined.

The recategorization of mutual funds has created many new fund categories. Under the equity funds, the schemes following contra, value and focused strategy have been categorised differently.

Recently, SEBI has recategorized balanced funds into three categories that is Aggressive hybrid funds, Balanced hybrid funds and Conservative hybrid funds. So investors should know the basic information that they must look into while investing in these mutual fund schemes.

If we see the performance of large-cap funds, more than 20 schemes are under performing their respective benchmark since the start of this year.

The direct plans are already a big hit with the HNIs (high networth investors) and institutional investors since their inception. Moreover, with an increased investment from small-town investors, the direct plans are emerging as the favourite choice for investment in mutual funds.

NFO is nothing but the first time subscription offer for a newly launched funds. The NFO’s are launched with an aim to raise the capital for the scheme by the fund houses.

Thematic funds are the funds whose objective is to reap optimal returns through investment in stocks which belong to a particular theme

Mutual fund investors are looking at various smart investment ideas to generate better returns. The mutual fund arena offers a wide basket of the choices to the investors of which quant funds are one of the lesser known funds.

Money market mutual fund are the open-ended schemes which predominantly invests in ultra-safe and high-quality liquid instruments like treasury bills, commercial paper, certificates of deposits and repurchase agreements, with having less than one-year maturity. The debt funds, fixed maturity plans and gilt funds are some of the options provided by money market funds.