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<p>Different types of mutual fund schemes expose investors to different risks. While debt funds are traditionally considered safer for their predominant investments in fixed income securities, there are some risks in debt fund investing. Accordingly, investors must make an informed decision while making an investment decision for <a href="https://www.utimf.com/mutual-fund-products/debt-funds/">debt funds</a>.</p>

<p><strong>Investing in Mutual Fund Scheme</strong> is steadily gaining favour amongst retail investors, for they can have a broad spectrum of mutual fund schemes to choose from. However, choosing the right mutual fund scheme is often challenging for the investors since the investment strategy is relative for different investors, and there is no &amp;#39;one size fits all&amp;#39; strategy.

New Fund Offer (NFO) denotes the first-time offer for subscription of scheme units being launched by a mutual fund. This may be considered similar to Initial Public Offers (IPO) of equity shares, wherein the company offers shares to the public. Before discussing the comparison between NFO vs. IPO, it is important to know how NFOs and IPOs work.

<div>Benjamin Franklin once said, &ldquo;there is nothing certain in this world, except death and taxes.&rdquo; While the taxes may take away a pie of your income, the Income-tax laws provide for various exemptions and deductions to help you plan your taxes in a better manner, and in the process, save taxes. Section 80C is one of the most commonly known tax benefits amongst the taxpayers. This section allows the taxpayers to lower the taxable income up to Rs. 1.50 lakh in a year for making certain tax-saving payments and investments.

In common parlance, a Non-Resident Indian (NRI) is an Indian citizen who is staying abroad for employment, business purpose, or currently living in a foreign land. Like the resident individuals, NRIs are also eligible to invest in mutual funds in India subject to compliance with the FEMA (Foreign Exchange Management Act) provisions. 

<p>India has a low level of mutual fund penetration relative to other major developed economies; the mutual fund AUM is around 10.9% of GDP (FY 2020) where as it is at 63% for major developed economies for the same period. This is because there is a high preference for investing in traditional investment options particular in physical assets such as Real-estate and Gold in India. However, over the last decade, there is a steady change in the preference for investing in India with more investors considering financial assets for achieving their long term goals over the physical assets.

<p><img alt="" src="https://doc.utimf.com/v1/AUTH_5b9dd00b-8132-4a21-a800-711111810cee/UTIC…; /></p>

<p>Large Cap Funds invest your money in Stocks of large companies that maybe more stable and established.</p>

<h2 style="font-size: 21px">HOW DO THEY DIFFER FROM OTHER EQUITY FUNDS?</h2>

As we all know, there are various types of mutual fund schemes catering to different investment needs. And having a right mix of mutual funds may aid in building a corpus over a period of time. Likewise, while investing in value funds it would lead to diversification in investment style and unlock the potential of wealth creation over medium to long run.

<p>The Securities and Exchange Board of India (SEBI) has defined different categories of mutual fund schemes, by sharing guidelines as a broader mandate to design the investment portfolio.