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A handbag is practically always functional and fashionably-designed.

In American English, a handbag is called a Purse (a small bag).

We see a lot of variety in handbags: Purses are generally used exclusively by women, though men sometimes find one useful to replace a backpack; such a Purse is sometimes self-consciously termed a "murse" or "manbag". It can also be bluntly called a "man-purse".

A medium-to-small-sized bag with a short handle, designed to be carried (clutched) in one's hand is often referred to as a Clutch. A larger Purse with two handles, is often called a Tote.

A Pocketbook is similar to a Purse (in the British English sense), but provides for the carrying of sheets of paper as well. Purses are also made-up of zari, sterling silver, leather, cloth etc.

A security Purse is used to protect other types-one from travel theft. The purse uses an invisible stainless steal strap sewn into the cloth and a top on the main zipper.

Other types of handbag include :

Hobo: Hobo bags are popular among Hollywood celebrities who favor the bohemian, or boho-chic, style familiarized by such celebrities as Mary-Kate and Ashley Olsen, Sienna Miller, and Joss Stone.

Satchel: Many students use them at universities and colleges. Many people claim it can affect the growth of the wearer, but this hasn't been proven.

Other types of Handbag include:

The Duffle: A large bag normally used for travel or sports, The Shopper, and The Cross body.

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