A mutual fund is a pool of funds collected from individuals/ companies/ other entities to invest in financial securities like equity and bond, gold/silver, and commodities. Each mutual fund is managed by one or more fund manager. 

Hybrid funds blend equity and debt to balance risk and return. Major hybrid mutual fund types are listed below:

1. Aggressive Hybrid Funds: Higher equity exposure (65-80%), ideal for risk-takers seeking growth.
2. Conservative Hybrid Funds: Higher debt allocation (75-90%), suitable for risk-averse investors needing stability.
3. Balanced Hybrid Funds: Equal mix of equity and debt (40-60%), perfect for moderate risk profiles.
4. Dynamic Asset Allocation Funds: Adjusts asset mix based on market conditions, offering flexible risk management.
5. Multi-Asset Allocation Funds: Diversifies across equities, debt, and gold, mitigating single asset risk.
6. Equity Savings Funds

Key Points on Understanding Contra Mutual Funds

1. Contrarian Strategy: Invests in undervalued, underperforming stocks for potential high returns.
2. Long-term Focus: Requires patience as returns materialize over several years.
3. Diversification: Spreads investments across various sectors to mitigate risk.
4. Active Management: Relies on fund manager’s expertise to select promising stocks.
5. Higher Risk: Involves higher risk due to investment in underperforming stocks.