Types of Mutual Funds? Here, we explained about types of mutual funds. Understanding mutual funds types are very important in investors point of view. Mutual funds have two main categories. Open-ended and closed Ended. Open-Ended Funds: it allows the investor to buy and sell units continuously and in and out as per investor's convenience. Th is type of mutual fund is launched through a New Fund Offer ( NFO ). A fter the NFO ends , This fund will be officially launched . T he value of the funds calculated at the close of every trading day. The investors can buy shares from a fund directly . Investors cannot sell during maturity tenure. Once Maturity completes, they can. Open-Ended contains four subcategories . Below we explained each one with importance and impacts. There understanding is important before investing. A. Equity Funds B. Hybrid funds C. Debt funds D. Money market funds Closed-Ended Funds: A fixed amount