Other Mutual Fund Types
Beyond equity, debt, and hybrid categories, here are a few more fund types you’ll encounter — with quick definitions and real‑world examples.
1) Index Funds / Exchange Traded Funds (ETF)
Mandate: Replicate/track a stated index • Min exposure to index securities: ≈ 95%
Passive funds/ETFs that mirror an index like NIFTY 50, Sensex, Nifty Next 50, sectoral indices, etc.
Index / ETFLive examples
2) Fund of Funds (FoF) — Overseas / Domestic
Mandate: Invest in an underlying fund • Min investment in underlying: ≈ 95%
FoFs allocate to another mutual fund (domestic or international), simplifying access to strategies/markets.
FoFLive examples
3) Fixed Maturity Plans (FMP)
Type: Close‑ended debt schemes with portfolio maturity aligned to scheme tenure
Investors typically enter during the NFO; units are held to maturity. Post‑NFO, fresh purchases are not available.
FMPFMPs launch as time‑bound series across AMCs and keep changing. Please check AMC websites for currently available series/NFOs.
4) Capital Protection Oriented Funds (CPOF)
Type: Close‑ended hybrids; debt allocation structured to protect principal over tenure
A portion is invested in debt (to accrete towards principal at maturity) and the rest in equity derivatives for potential upside.
Capital ProtectionLive examples
5) International REITs FoF
Type: Fund‑of‑Fund investing in overseas REIT funds/ETFs
Provides exposure to global commercial real estate and rental income streams via REIT securities.
REITs (Overseas)Live examples
6) Quant Funds (Rule‑Based Equity)
Type: Equity schemes using quantitative models / predefined rules
Quant funds follow systematic, rules‑driven stock selection and rebalancing — reducing human discretion and emotion. They are not plain index trackers; models may use factors like value, quality, momentum, or multi‑factor blends.
QuantLive examples
Bottom Line
Use Index/ETFs for low‑cost market exposure; FoFs for easy access to strategies/overseas markets; FMPs for targeted, close‑ended debt exposure; CPOFs for principal‑protection structures; and International REITs for global real‑estate diversification.