Different Types of Mutual Funds

Equity funds primarily invest in stocks, and they can be categorized based on the size of the companies they invest in, such as small-, mid-, or large-cap.

Equity funds can also be categorized based on their investment approach, including aggressive growth, income-oriented, value, and others.

Value funds focus on investing in high-quality, low-growth companies that are undervalued by the market, characterized by low price-to-earnings (P/E) ratios, low price-to-book (P/B) ratios, and dividend yields.