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| Home > Education and Planning > Investor Education |
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| WHAT TYPES of Mutual Funds Are There? |
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Selecting the right investment is critical to the success of any financial plan. By choosing funds based on your goals, investment time horizon and risk tolerance, you will be well on your way toward building a solid foundation for your financial future.
Each mutual fund Enterprise offers varies in the types of investments it holds. Some funds are aggressive and invest solely in stocks. Others may invest in a combination of stocks and bonds to reduce volatily. Each type of fund has a particular advantage, but the type of funds best suited for you depends on your established, long-term financial strategy developed by you and your professional financial advisor.
Mutual Funds Categories:
- Balanced Funds - Use a mix of stocks, bonds, and money markets to try to generate moderate growth and income.
- Bond Funds - Invest in government, Treasury, and municipal bonds to provide revenue.
- Global Funds - Invest in foreign and domestic securities seeking to balance out single-market performance risk.
- Growth Funds - Actively buy and sell stocks in an attempt to generate high returns. May use high-yield bonds or mortgage derivatives.
- Index Funds - Strive to post returns comparable to the benchmark index for an investment category.
- International Funds - Invest exclusively in securities issued outside the United States.
- Money Market Funds - Invest in high-quality bonds, commercial paper, and bank notes. Seek to maintain a stable share price and generate income.
- Small-Cap Funds - Buy and sell stocks of smaller companies in search of high returns
- Large-Cap Funds - Growth funds that buy and sell stocks of larger, well-established companies in search of high returns.
- Value Funds - Seek to maintain principal and generate modest income by investing in out-of-favor or undervalued securities.
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