Various types of Mutual Fund schemes exist to cater to different needs of different people. Largely there are three types mutual funds- Equity, Debt and Hybrid funds. These can be further classifieds based on their asset allocation.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes.