1. Different Types of Mutual Funds Mutual funds can be categorized based on their investment strategy, asset class, and objectives. Here are the main types: a) Equity Mutual Funds (Stock Funds) Objective : These funds primarily invest in stocks and aim for high returns over the long term. Risk : High, because stock prices can be volatile. Best for : Investors with a long-term horizon who can tolerate market fluctuations. Example : Large-cap funds, mid-cap funds, small-cap funds. b) Debt Mutual Funds (Bond Funds) Objective : These funds invest in fixed-income securities like government bonds, corporate bonds, or money market instruments. Risk : Lower than equity funds but still carries some risk depending on the bonds chosen. Best for : Investors looking for stability and steady income (lower risk tolerance). Example : Short-term bond funds, long-term bond funds, corporate bond funds. c) Hybrid Mutual Funds Objective : These funds invest in a mix of equity and debt, offering a bala...