Core investment products, explained plainly

A general guide to mutual funds, government and corporate bonds, and fixed deposits, covering how each works and what to consider before deciding.

A mutual fund pools money from many investors and is managed against a stated objective. Funds are commonly grouped into equity, debt, and hybrid categories, each with a different balance of growth potential and risk.

Equity funds invest mainly in shares, debt funds in fixed-income securities, and hybrid funds combine both. Reading a scheme's objective and risk rating helps set expectations.

Government bonds are issued by the central or state government and are generally regarded as carrying low credit risk. Corporate bonds, or debentures, are issued by companies and typically offer a higher yield to compensate for greater credit risk.

Yields, maturities, and the issuer's ability to repay all shape how a bond behaves, so compare the issuer and terms before investing.