Mutual Fund Investing
Planning on investing? What are the different types of mutual funds? Which one is right for you?
Mutual funds are often a bit safer than investing in individual companies on the New York Stock Exchange or on NASDAQ. You have many different mutual fund options. Here's a list of them.
• Aggressive Funds. These are mutual funds that look for rapid growth of companies. They usually buy smaller companies that appear to have a reasonable chance of doing very well, and buy them and sell them over a fairly short period of time.
• Convertible Bond Funds. These are mutual funds that invest mostly in bonds and stocks that can are preferred in nature and can be converted into common stocks.
• Corporate Bond High-Yield Funds. Mutual funds that invest most of the assets in bonds that are considered to be below investment grade.
• Government Bond Treasury Funds. Mutual funds that invest almost al of the assets in Treasury securities.
• Government Bond General Funds. Mutual funds invested in a mix of Treasury, agency and mortgage securities.
• Growth Funds. Mutual funds invested mainly in equity securities.
• Hybrid Funds. Mutual funds that invest in all kinds of stocks and bonds.
• International Funds. Mutual funds that are invested mainly in equity securities in Europe. They can also have some of the assets invested in the United States, but the primary focus is the European markets.
• International Bond Funds. Mutual funds that are invested mainly in bonds secured by currencies outside the United States. Some bonds in these funds can include bonds from the U.S. dollar, but most are not.
• Municipal Bond Funds. Mutual funds that invest in income that is non-taxable by the federal government.
• Specialty Funds. Mutual funds that invest in equity securities in one industry or market sector. Typical specialty funds include technology, medical, or utilities.