Mutual Fund

Tracom is a corporate ARN holder and has been into Mutual Fund distribution since 2014. It is associated with all the prominent Mutal Fund Houses of the Country. Serving over 1000 satisfied customers in its Mutual Fund department Tracom has created a niche for itself in this business. Tracom encourages the use of digital platform for all transaction executions. It is associated with BSE Star MF for the same.


An equity fund is a mutual fund scheme that invests predominantly in equity stocks.

In the Indian context, as per current SEBI Mutual Fund Regulations, an equity mutual fund scheme must invest at least 65% of the scheme’s assets in equities and equity related instruments.

An Equity Fund can be actively managed or passively managed. > Index funds and ETFs are passively managed.

Equity mutual funds are principally categorized according to company size, the investment style of the holdings in the portfolio and geography.

The size of an equity fund is determined by a market capitalization, while the investment style, reflected in the fund’s stock holdings, is also used to categorize equity mutual funds.

Equity funds are also categorized by whether they are domestic (investing in stocks of only Indian companies) or international (investing in stocks of overseas companies). These can be broad market, regional or single-country funds.

Some specialty equity funds target business sectors, such as health care, commodities and real estate and are known as Sectoral Funds.

There are different types of equity mutual fund schemes and each offers a different type of underlying portfolio that have different levels of market risk.

Large Cap Equity Funds is an open ended equity scheme which invests predominantly in stocks of large cap companies where a minimum of 80% is invested in equity and equity related instruments of large cap companies. This type of fund is known to offer stability and sustainable returns, over a period of time.

Large Cap companies are generally very stable and dominate their industry. Large-cap stocks tend to hold up better in recessions, but they also tend to underperform small-cap stocks when the economy emerges from a recession. Large-cap tend to be less volatile than mid-cap and small-cap stocks and are therefore considered less risky.

Mid-Cap Equity Funds invest in stocks of mid-size companies, which are still considered developing companies. At least 65% investment is made in mid cap stocks. Mid-cap stocks tend to be riskier than large-cap stocks but less risky than small-cap stocks. Mid-cap stocks, however, tend to offer more growth potential than large-cap stocks.

Small Cap Funds invest in stocks of smaller-sized companies. At least 65% investment is made in Small Cap stocks. Small cap is a term used to classify companies with a relatively small market capitalization. Many small caps are young companies with significant growth potential. However, the risk of failure is greater with small-cap stocks than with large-cap and mid-cap stocks. As a result, small-cap stocks tend to be the more volatile (and therefore riskier) than large-cap and mid-cap stocks. These type of funds are suitable for high risk appetite investors.

Multi Cap Equity Funds or Diversified Equity Funds invests in stocks of companies across the stock market ie., large, mid or small regardless of size and sector. These funds provide the benefit of diversification by investing in companies spread across sectors and market capitalization. They are generally meant for investors who seek exposure across the market and do not want to be restricted to any particular sector. They invest in companies across different market caps and hence reduce the amount of risk in the fund. Diversification helps prevent events that could affect a single sector for affecting the fund, and hence reduce risk.

Thematic Equity Funds: These funds invest in securities of specific sectors such as Information Technology, Banking, Service and pharma sector etc., which is specified in their scheme information documents. So, the performance of these schemes depends on the performance of the respective sector. These funds may give higher returns, but they also come with increased risks.

EQUITY LINKED SAVINGS SCHEME (ELSS): Equity-Linked Savings Scheme (ELSS) is an equity mutual fund investment that invests at least 80 per cent of its assets in equity and equity-related instruments. ELSS can be open-ended or close ended. Investments in an ELSS qualify for tax deductions under Section 80C of the Income Tax Act within the current overall limit of ₹1.5 lakh. The amount you invest in ELSS is deducted from your taxable income, which helps you lower the amount of income tax you are liable to pay. Investments in ELSS are subject to a mandatory three-year lock-in period.

To know more about which fund suits your investment and risk profile the best contact your mutual fund advisor.

If you want to avoid the market fluctuations of Equity Stocks and are Risk-averse, then you must consider investing in Debt Mutual Funds.

A debt fund (also known as income fund) is a fund that invests primarily in bonds or other debt securities.

Debt funds invest in short and long-term securities issued by government, public financial institutions, companies, Treasury bills, Government Securities, Debentures, Commercial paper, Certificates of Deposit and others.

Debt funds have potential for income generation and capital preservation

Debt Fund Categories as per SEBI guidelines on Categorization and Rationalization of schemes

Overnight Fund Overnight securities having maturity of 1 day
Liquid Fund Debt and money market securities with maturity of upto 91 days only
Ultra Short Duration Fund Debt & Money Market instruments with Macaulay duration of the portfolio between 3 months - 6 months
Low Duration Fund Investment in Debt & Money Market instruments with Macaulay duration portfolio between 6 months- 12 months
Money Market Fund Investment in Money Market instruments having maturity upto 1 Year
Short Duration Fund Investment in Debt & Money Market instruments with Macaulay duration of the portfolio between 1 year - 3 years
Medium Duration Fund Investment in Debt & Money Market instruments with Macaulay duration of portfolio between 3 years - 4 years
Medium to Long Duration Fund Investment in Debt & Money Market instruments with Macaulay duration of the portfolio between 4 - 7 years
Long Duration Fund Investment in Debt & Money Market Instruments with Macaulay duration of the portfolio greater than 7 years
Dynamic Bond Investment across duration
Corporate Bond Fund Minimum 80% investment in corporate bonds only in AA+ and above rated corporate bonds
Credit Risk Fund Minimum 65% investment in corporate bonds, only in AA and below rated corporate bonds
Banking and PSU Fund Minimum 80% in Debt instruments of banks, Public Sector Undertakings, Public Financial Institutions and Municipal Bonds
Gilt Fund Minimum 80% in G-secs, across maturity
Gilt Fund with 10 year constant Duration Minimum 80% in G-secs, such that the Macaulay duration of the portfolio is equal to 10 years
Floater Fund Minimum 65% in floating rate instruments (including fixed rate instruments converted to floating rate exposures using swaps/ derivatives)

FMPs are closed-ended funds which eliminate interest rate risk and lock-in a yield by investing only in securities whose maturity matches the maturity of the fund.

FMPs create an investment portfolio whose maturity profile match that of the FMP tenor.

Potential to provide better returns than liquid funds and Ultra Short Term Funds since investments are locked in

Low mark to market risk as investments are liquidated at maturity.

Investors commit money for a fixed period.

Investors cannot prematurely redeem the units from the fund

FMPs, being closed-end schemes are mandatorily listed - investors can buy or sell units of FMPs only on the stock exchange after the NFO.

Only Units held in dematerialized mode can be traded; therefore investors seeking liquidity in such schemes need to have a demat account.

There are also the below types of funds available

Capital Protection Oriented Funds


Solution-oriented & Other funds like Retirement Funds, Childrens Funds, Index Funds/ETF, Fund of Funds (Overseas/Domestic)

Multi Asset Funds

Arbitrage Funds

Gold Exchange Traded Funds (FoF)

International Funds


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