INVESTMENT IN open-ended Mutual fund

Type of mutual funds 

Growth Mutual funds 

The (Mutual) fund manager seeks to take a position in companies with strong competitive positions or expanding market opportunities with above-average profits or earning Growth. They often look for those companies that are to require advantage of long-term growth trends which can drive earnings higher. 

Value Mutual funds 

The fund managers mainly invest in stocks which are undervalued and have the potential to deliver a superior risk-adjusted return within the long-term. They invest in stocks which are trading at deflated price due to market exaggeration and exhibit characteristics like lower-than-average price-to-book, price-to-earnings ratios or high dividend yields. Growth kind of investing is taken under consideration to be more aggressive than value investing and should generate superior returns during the healthy economic environment. Undergrowth style, since fund managers invest in stocks at higher valuations, a setback. A growth style is best suited to aggressive investors while the price style is best suited to conservative investors.

 Opportunities Mutual Funds 

The fund managers primarily invest in stocks or sectors which demonstrate good growth opportunity' with an aim to outperform plain vanilla equity funds. These stocks or sectors are selected their capability to maximize opportunities that arise from the changing economy, various economic reforms and from those sectors that drive the economy. Usually, these investments are theme- or sector (or a combination)-specific though they seek to attenuate risk arising from the pure sector and market-cap based funds. just like the 'growth' funds, these funds are meant for investors to urge superior returns with higher risks. 

Contra Mutual funds 

As the name suggests, these funds take investment decisions against the overall that's when everybody is bearish, the contrarian will turn bullish and vice-versa. They Endeavor to profit by going against the market herd and staying long in such equities until the herd favors them, leading to an uptrend of the share price. Investors need to be cautioned that this category is riskier than the normal diversified funds. 

 Multi-cap Mutual funds 

 Here, the fund manager largely invests in stocks spanning the whole market capitalization spectrum. Though a few of do indicate their allocation to large, mid little Small cap stocks, mostly they're indistinguishable from a daily diversified fund. 

Dividend yield Mutual funds 

These funds predominantly invest in stocks which have ånd are expected to possess a high dividend yield.