Hybrid funds invest both in equities and in debt instruments with a view to reducing the excess on the risk side and extracting a profit from this balance between risk and reward. They suit people who intend to acquire stock market gains but want that stability also through some investment in debt.
4. Money Market Funds: Money market funds invest in short-term, highly liquid instruments like Treasury bills, certificates of deposit, and commercial paper. Money market funds are pretty safe investment vehicles. Investors view such funds very conservatively in terms of risk, so they invest here and keep their money parked for short periods with minimum risks.