Exploring New Mutual Funds in 2021
The year 2021 has seen a surge in the popularity of mutual funds as a mode of investment. With the market’s volatile nature, mutual funds have emerged as a stable and reliable investment option for investors who are looking to diversify their portfolios. In this blog, we will explore some of the new mutual funds launched in 2021.
- Thematic Funds
Thematic funds invest in companies that are part of a particular theme or trend. For instance, ESG (Environmental, Social and Governance) funds invest in companies that adhere to environmental and social norms, while technology funds invest in companies that are pioneers in technology. In 2021, several new thematic funds have been launched, including Healthcare, Clean Energy, and Fintech funds.
- Multi-Cap Funds
Multi-cap funds invest in companies of different market capitalization, including small-cap, mid-cap, and large-cap. These funds provide a diversified portfolio and are suitable for investors with a moderate risk appetite. In 2021, new multi-cap funds have been launched, which are a mix of equity and debt investments.
- Sector Funds
Sector funds invest in companies that are part of a particular sector, such as banking, pharma, or energy. These funds are suitable for investors who have in-depth knowledge of a particular sector and want to invest in it. In 2021, several new sector funds have been launched, including the Infrastructure Fund and the Pharma Fund.
- Debt Funds
Debt funds invest in fixed-income securities such as bonds, government securities, and other debt instruments. These funds are suitable for investors who want a stable and steady return on their investment. In 2021, new debt funds have been launched, including the Short Term Debt Fund and the Corporate Bond Fund.
- Hybrid Funds
Hybrid funds invest in a mix of equity and debt instruments. These funds are suitable for investors who want to diversify their portfolio and are looking for a moderate risk-return balance. In 2021, new hybrid funds have been launched, including the Aggressive Hybrid Fund and the Conservative Hybrid Fund.
- International Funds
International funds invest in companies that are based outside the investor’s home country. These funds provide exposure to foreign markets and allow investors to diversify their portfolios geographically. In 2021, new international funds have been launched, including the Global Technology Fund and the Emerging Markets Fund.
- Index Funds
Index funds are passive funds that invest in a basket of securities that replicate a particular index, such as the S&P 500. These funds aim to match the performance of the index they track and are suitable for investors who want to invest in the overall market without the hassle of picking individual stocks. In 2021, new index funds have been launched, including the Nifty 50 Index Fund and the BSE Sensex Index Fund.
- Small-Cap Funds
Small-cap funds invest in companies with a smaller market capitalization. These funds carry a higher risk but can offer higher returns in the long run. In 2021, new small-cap funds have been launched, including the Small-Cap Value Fund and the Small-Cap Growth Fund.
- Value Funds
Value funds invest in companies that are undervalued by the market and have the potential to grow in the long run. These funds are suitable for investors who are looking for long-term investments and are willing to take some risk. In 2021, new value funds have been launched, including the Value Fund and the Dividend Yield Fund.
- Mid-Cap Funds
Mid-cap funds invest in companies with a market capitalization between small-cap and large-cap companies. These funds carry moderate risk and can offer higher returns than large-cap funds. In 2021, new mid-cap funds have been launched, including the Mid-Cap Value Fund and the Mid-Cap Growth Fund.
Conclusion
In conclusion, mutual funds continue to be a popular investment option in 2021, with a wide range of new funds being launched catering to various investment needs and risk appetites. However, as with any investment, it’s essential to do your research and understand the risks associated with each fund before investing. Consulting a financial advisor or a mutual fund expert can help investors make informed decisions and achieve their long-term financial goals.
Read more useful content:
- How to invest in mutual funds
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- All about mutual funds-types & importance
- The Power of SIP Investment in Mutual Funds
Frequently Asked Questions (FAQs)
What is a mutual fund?
A mutual fund is an investment vehicle that pools money from multiple investors and invests in a diversified portfolio of securities, such as stocks, bonds, and other assets.
What are the benefits of investing in mutual funds?
Investing in mutual funds offers several benefits, including diversification, professional management, liquidity, and convenience.
What are the types of mutual funds?
There are various types of mutual funds, including equity funds, debt funds, hybrid funds, sector funds, thematic funds, and index funds, among others.
How do I invest in mutual funds?
Investing in mutual funds can be done through various channels, including online platforms, banks, and mutual fund companies. Investors can also seek the assistance of a financial advisor.
What is the minimum investment amount required to invest in mutual funds?
The minimum investment amount required to invest in mutual funds varies depending on the fund and the mutual fund company. It can range from a few hundred to thousands of dollars.
What is a Net Asset Value (NAV)?
Net Asset Value (NAV) is the per-share market value of a mutual fund. It is calculated by dividing the total value of the fund’s assets by the number of shares outstanding.
What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan (SIP) is a mode of investing in mutual funds, where investors invest a fixed amount of money at regular intervals, usually monthly.
What is a Systematic Withdrawal Plan (SWP)?
A Systematic Withdrawal Plan (SWP) is a mode of withdrawing money from mutual funds, where investors withdraw a fixed amount of money at regular intervals, usually monthly.
What is the expense ratio of a mutual fund?
The expense ratio of a mutual fund is the annual fee charged by the mutual fund company for managing the fund. It includes the fund manager’s fees, administrative expenses, and other costs associated with managing the fund.
What are the risks associated with investing in mutual funds?
Investing in mutual funds carries some risks, including market risk, interest rate risk, credit risk, and liquidity risk. It’s essential to understand these risks and consult with a financial advisor before investing in mutual funds.
