Fantasy is magic. However, there are many kinds of fantasy.
Most people imagine "
Lord of The Rings" as a perfect example of what a fantasy story is, but our opinions would differ. I would argue that fantasy is not a set genre, but a specific setting for your world. For example, if you pick fantasy as your genre, you know it will involve some kind of magic or monsters, but that magic can be placed within many different situations. For example:
High Fantasy: A fantasy story documenting an epic struggle between good and evil.
Contemporary Fantasy: A fantasy story taking place within a modern world, or a world similar to ours.
Science Fantasy: A story including both elements of science fiction and fantasy.
These are some of the most basic sub-genres of fantasy, but if you want a more specific list of fantasy sub-genres, then you can look here:
http://www.worldswithoutend.com/resources_sub-genres.asp
Honestly, you don't need to worry that much. You can be a little practical about things. You can mix in a little bit of the mundane among the magic. Or, you can make magic the mundane. Fantasy is a wide genre with a lot of freedom, so my advice matters little when I don't know exactly what your goal is.