Flow Diagram — Types of Investments
Mutual Funds → REITs → InvITs • Professional color theme (navy / emerald / steel)
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Mutual FundsPooled investments in securities across equity, debt, hybrid, passive & factor funds.
- Equity: Large/Mid/Small, Sectoral, ELSS — high risk / high reward
- Debt: Liquid, Corporate, Gilt — income & stability
- Hybrid: Aggressive & Conservative mixes
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REITs (Real Estate)Invest in income-generating real estate or mortgages to earn rent/interest.
- Equity REITs: Own/manage properties; rental income
- Mortgage REITs: Invest in mortgages; interest income
- Hybrid: Mix of both rental + interest
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InvITs (Infrastructure)Invest in infrastructure assets — roads, power, telecom — for stable cash flows.
- Public: Listed, retail + institutional, offers liquidity
- Private: Unlisted, institutional-only, long-term financing
- Full-Fledged: Operational assets—lower risk
- Developmental: Under-construction—higher risk, higher upside
💼 Types of Mutual Funds, REITs & InvITs
💰 Mutual Funds
1. Equity Mutual Funds
- Large Cap, Mid Cap, Small Cap, Sectoral/Thematic, ELSS (80C)
- High Risk – High Reward
2. Debt Mutual Funds
- Liquid Funds, Corporate Bonds, Gilt Funds
- Lower risk, steady income potential
3. Hybrid / Balanced Funds
- Aggressive Hybrid – High Equity Allocation
- Conservative Hybrid – High Debt Allocation
4. Passive Funds (ETF / Index)
- Index: Nifty 50, Sensex (benchmark)
- ETF: Traded on stock exchanges
5. Factor Funds (AKA Beta Funds)
- Follow quantitative factors to construct portfolios
- a) Momentum – Track upward-trending stocks, High Risk
- b) Low Volatility – Focus on stable stocks
- c) Value – Invest in undervalued, high-dividend stocks
- d) Quality – Focus on strong fundamentals, low debt
🏢 Real Estate Investment Trusts (REITs)
1. Equity REITs
- Own and manage commercial real estate
- Generate income primarily through rent
2. Mortgage REITs
- Invest in real estate loans & mortgage-backed securities
- Earn income from interest on loans
3. Hybrid REITs
- Mix of Equity and Mortgage REITs
- Earn both rental and interest income
⚙️ Infrastructure Investment Trusts (InvITs)
1. Public InvITs
- Listed on NSE / BSE
- Open to retail and institutional investors
- Provides liquidity
2. Private InvITs
- Unlisted and privately placed
- Available only to institutional investors
- Used for long-term infrastructure financing
3. Full-Fledged InvITs
- Invest in operational, revenue-generating assets
- Lower risk due to stable cash flows
4. Developmental InvITs
- Invest in under-construction infrastructure projects
- Higher risk but potential for capital appreciation