Equity Funds

Invest at least 65% of their assets in stocks of companies listed on the stock exchange. They are more suitable as long-term investments (>5 years) as stocks can be volatile in the short term. They have the potential to offer higher returns but also come with high risk.

Major Categories of equity mutual funds are Large Cap, Mid Cap, Small Cap, Multi Cap, Index and International funds

Debt Funds

primarily invest in fixed-income instruments like Government securities, corporate bonds, and other debt instruments. They are not affected by stock market volatility and hence, can offer more stable returns compared to equity mutual funds. The types of debt mutual funds are differentiated on the basis of the maturity period of the securities they hold.

Major Categories of Debt mutual funds are Liquid, GoI bonds and Short duration funds

Hybrid Funds

Invest in both equity and debt in varying proportions depending on the investment objective of the fund. Thus, hybrid funds give you diversified exposure to various asset classes. Hybrid funds are categorized on the basis of their allocation to equity and debt.

Major Categories of Hybrid mutual funds are Aggressive, Conservative and Balance funds

ELSS

(Equity Linked Savings Scheme) is a tax-saving equity mutual fund. It invests at least 80% of its portfolio in stocks. The investment made under ELSS is eligible for tax deduction under section 80C, of the Income Tax Act, 1961 up to Rs 1.5 Lakh per annum. ELSS also comes with a lock-in of 3 years from the date of investment.

General

General Insurance is related to all other aspects of human life apart from the life aspect.

It includes motor insurance, fire insurance and other types of insurance such as Sport insurance, Professional indemnity policy, Marine Cargo policy, Burglary, Export Import business, House Insurance and Crop insurance etc.

Health Insurance

Health insurance takes care of your medical expenses and ensures that out-of-pocket expenses are curtailed up to the Sum insured. Insurer can avail cashless treatment at a network hospital, with the expense coverage of defined pre and post hospitalization. Various Health Insurance plans are available for all family members under one policy or as an individual.

Life

Life insurance is a type of insurance policy in which the insurance company undertakes the task of insuring the life of the policyholder for a premium that is paid on a daily/monthly/quarterly/yearly basis.

Types of life insurance are Whole Life, Endowment, Annuity and child Endowment policy, ULIP (Unit Linked Insurance Plan), Pension plan