An index fund tries to replicate a specific performance of a market index, for example that of the S &P 500 or the Nifty 50. Due to their passively managed attribute, their costs are more cost-effective. Index funds thus cater well to investors who require broad and diversified exposure at affordable expense costs.
6. Sector Funds: Sector funds invest into a specific industry, say technology, healthcare, or energy. Such funds also can have the potential of yielding good returns if the sector chosen is doing well; however, they are riskier since they do not enjoy the diversification of most other types of mutual fund.
7. International Funds: They invest in the markets of other nations and give exposure to the global market. It is one of the popular ones for investment in abroad.
NO economies of scale available
Advantages of Mutual Fund Investment