Index fund: Index funds refers to those funds where the portfolios are designed in such a way that they reflect the composition of some broad based market index. This can be achieved either by investing only in index directly or by buying the stocks that make up the index in exact proportion which goes into making of an index.
Bond fund: Such funds invests mainly in fixed income securities (Primarily Bonds). On an average they offer slightly higher returns than bank fixed deposits. The capital appreciation offered by such funds are lesser than equity funds.
Property fund: as the name suggests, this fund invests in real estate.
Fund of funds: A fund of fund scheme is a mutual fund scheme that invests in other mutual fund schemes. The concept is widely prevalent abroad. Mutual funds in India are allowed to launch fund-of-funds.
Example: The Quantum Equity Fund of Funds is a perfect investment for investors who would like to invest in various Equity funds, and would want a professional fund manager to choose and manage the funds for them.
Exchange Traded Fund:
What are ETFs (Exchange Traded Funds)?
ETFs are generally passively managed mutual fund schemes that track a benchmark index and the performance of that index, subject to tracking error. ETF’s can be classified as Equity ETFs, Debt ETFs, and Commodity ETFs.
An ETF, or exchange-traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange. ETFs experience price changes throughout the day as they are bought and sold. ETFs typically have higher daily liquidity and lower fees than mutual fund shares, making them an attractive alternative for individual investors.
Because it trades like a stock, an ETF does not have its net asset value (NAV) calculated once at the end of every day like a mutual fund does.