With the Indian economy going through a churn and seeking to find its footing again, investors are facing a peculiar situation. On the one hand, fixed-income products such as fixed deposits (FDs) are losing favour as their returns plummet, on the other, identifying stocks and sectors to invest in seems more difficult than ever before.
As a result, investors are now more willing to consider products they have probably not invested in before. Various categories of mutual funds—which come with in-built advantages such as asset class choices and combinations, diversified portfolios and professional management—are good alternatives. They are especially useful for do-it-yourself investors. While equity mutual funds have become the default option for the equity allocation in most retail portfolios, the other categories of mutual funds do not get the same attention.
