A mutual fund pools money from thousands of investors and hands it to a professional manager, who invests it in shares, bonds, or both. You own "units" of that pool, and their value rises and falls with the market. Here's how it works — and the funds Indians actually talk about, five in every category.
How a mutual fund works
What you investValue, up and down with markets
Start Here
Six words that unlock every fund
Get these and the rest is easy — every fund below reads the same way, only the names and mix of investments change.
NAV
Your unit's price
Net Asset Value — the price of one unit of the fund, worked out fresh at the end of every trading day.
SIP
Investing in installments
Systematic Investment Plan — put in a fixed amount every month instead of one lump sum. Most common way Indians invest in funds.
Expense ratio
What it costs
The yearly fee the fund charges you, as a % of your investment, for managing your money. Lower is better, all else equal.
AUM
The fund's size
Assets Under Management — the total money the fund is managing for every investor put together.
Exit load
Cost of leaving early
A small fee, often around 1%, charged if you redeem your units before a set period — commonly one year.
Riskometer
How risky it is
A SEBI-mandated gauge, from Low to Very High, showing roughly how much a fund's value can swing.
The Whole Market
India's mutual funds, in five drawers
Tap any drawer to open it. Five of the most widely held or talked-about funds per category — examples to learn from, not a ranking or recommendation. Figures are indicative as of mid-2026.
1
Equity Funds
Invest mainly in company shares. The highest growth potential of any fund type, but the value can swing sharply in the short term — best suited to goals five years or further away.
Higher risk, higher growth
01
HDFC Flexi Cap FundFree to invest across large, mid and small companies as opportunities shift.
Flexi Capcategory
02
ICICI Prudential Bluechip FundSticks mostly to India's biggest, most established companies.
Large Capcategory
03
SBI Small Cap FundSmaller, younger companies — more growth potential, more volatility.
Small Capcategory
04
Nippon India Growth FundMid-sized companies that have outgrown small-cap but aren't blue chips yet.
Mid Capcategory
05
Parag Parikh Flexi Cap FundDiversified across market caps, with some exposure to overseas stocks too.
Flexi Capcategory
2
Debt Funds
Invest in government and corporate bonds and other fixed-income instruments. Far steadier than equity — used for shorter goals, or as the calmer part of a portfolio.
Lower risk, steadier returns
01
SBI Magnum Gilt FundInvests only in government securities — no company credit risk at all.
Giltcategory
02
HDFC Corporate Bond FundSticks to the highest-rated corporate bonds.
Corporate Bondcategory
03
ICICI Prudential Short Term FundBonds maturing in roughly one to three years — less rate-sensitive.
Short Durationcategory
04
Axis Banking & PSU Debt FundBonds issued by banks and public sector undertakings.
Banking & PSUcategory
05
Kotak Liquid FundVery short-term paper — for parking money for a few days or weeks.
Liquidcategory
3
Hybrid Funds
Mix equity and debt in a single fund, so you don't have to balance them yourself. Risk and return sit somewhere between a pure equity fund and a pure debt fund.
Balanced mix of both
01
HDFC Balanced Advantage FundShifts the equity-debt mix up or down as markets move.
Dynamic Assetallocation
02
ICICI Prudential Equity & Debt FundA steady mix, tilted more toward equity than debt.
Aggressive Hybridcategory
03
SBI Equity Hybrid FundOne of India's longest-running hybrid funds.
Aggressive Hybridcategory
04
Kotak Equity Savings FundLower equity exposure than most hybrids — a gentler ride.
Equity Savingscategory
05
Axis Multi Asset Allocation FundSpreads money across equity, debt and gold in one fund.
Multi Assetcategory
4
Index Funds & ETFs
Simply copy a market index, like the Nifty 50, instead of a manager picking stocks. No one's trying to beat the market — you just get what the market gives, at a low cost.
Lowest cost · no manager bets
01
UTI Nifty 50 Index FundTracks India's top 50 companies by simply buying all of them.
Nifty 50tracks
02
HDFC Index Fund – Sensex PlanTracks the BSE Sensex, the 30-stock benchmark.
Sensextracks
03
ICICI Prudential Nifty Next 50 Index FundTracks the next 50 large companies just below the Nifty 50.
Nifty Next 50tracks
04
Nippon India ETF Nifty BeESAn ETF version of a Nifty 50 fund — bought and sold on the stock exchange like a share.
Nifty 50ETF
05
SBI Gold ETFTracks the price of gold, not company shares.
GoldETF
5
ELSS (Tax-Saving) Funds
Equity funds that also earn you a tax deduction under Section 80C, up to ₹1.5 lakh a year. The trade-off is a mandatory lock-in — the shortest of any 80C option.
3-yr lock-in · 80C benefit
01
Axis ELSS Tax Saver FundOne of the most widely held tax-saving funds in India.
3 yrslock-in
02
Mirae Asset ELSS Tax Saver FundDiversified equity portfolio with the Section 80C benefit attached.
Pick any name above and you can now describe it: what it invests in (equity, debt, or a mix), how it's run (a manager picking investments, or simply tracking an index), and how risky it is (per the Riskometer).
More equity usually means more risk and more growth potential; debt funds trade growth for stability; hybrid funds sit in between; index funds mirror the market at the lowest cost; and ELSS adds a tax break on top of equity investing, in exchange for a 3-year lock-in.
Fund names are examples for learning, not recommendations · figures indicative as of mid-2026.
Disclaimer: BellsEye is an educational and financial literacy platform. We are not SEBI registered investment advisors. This page is for educational and informational purposes only and should not be considered investment advice. Mutual fund investments are subject to market risks — read all scheme related documents carefully before investing. Past performance is not indicative of future returns, and NAVs, ratings and fund availability change often. Always consult a certified financial advisor before making investment decisions.
