Yes, there are multiple type of mutual fund that caters varieties of need of an investor which depends upon the financial goal & time horizon of investor
Short Term.:If Mr Vikas wanna buy a car within 1-3 years from now, and wish to make some down payment while purchasing car, he may start accumulating small amount of money every one in liquid fund, ultra-short fund or short-term fund which can be withdrawn any point of time, there is no exit load that
Medium Term.:Mr. Kamlesh plan to go for foreign tour 4-5 years down the line from now, and if current costing of that foreign tour is Rs 3 lakh and future costing of that same tour with 5 % inflation will be 3.82 lakh after 5 years so he may choose now to invest Rs 5000 in hybrid mutual fund which is combination of debt and equity thus after 5 years that maturity amount would be around 3.90 to achieve his dream of foreign tour.
Medium to Long term:- The financial goal or expenses which gonna occur between 6-10 year from now normally considered Medium to Long term
Long-Term goal.:Mr. Rahul is a working professional would like to plan for his retirement corpus and he needs almost 3 Cr at the of retirement to live life as same as current standard of living which is 25 years ahead of now so he may choose to invest Rs 15000 in pure diversified equity mutual fund monthly through SIP to achieve the target amount like this one can plan to invest for child higher education, child marriage etc Mainly the financial goal which are 10 years away from now ought to be considered as long term financial goal