What is the meaning of Categories in financial markets?

Categories in financial markets refer to various asset classes where investors can invest e.g. debt instruments, equity instruments, mixed portfolio etc. They are usually classified as an equity fund, debt fund, hybrid funds etc. Equity funds can be further classified based on size, style of investment, risk etc. In addition to debt and equity, one can invest in huge value stocks of various companies which are low in risk and thereby give lower returns. Likewise, bonds in debt and fixed income instruments are classified on the basis of maturity and credit rating.


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