Mutual Funds Investment

TYPES OF MUTUAL FUNDS INVESTMENT

So, you have decided to jump into the mutual fund investment game. While mutual funds investment have shown themselves over time to be a safer bet than regular stock trading, there is always the chance you could lose your money. But the type of fund you choose will have a lot to do with the amount of risk you take on and the kind of return you are looking for. For starters, mutual funds investments are usually broken down into six main categories.

Equity mutual funds investment allows you to invest in typical shares of common, everyday stock.

Fixed income mutual funds investment allow you to invest in corporate or government securities that usually offer a set rate of return on your investment.

Balanced mutual funds investment allows the investor to take on a fund that includes both stock and bond options.

Maybe the safest form of mutual funds investment is known as money market mutual funds. They offer a high degree of stability for your principal, as well as high liquidity if you need to back out.

Bond mutual funds investment is popular since they invest in tax free as well as taxable ones.

And finally, sector/speciality funds are used to help diversify your holdings within a particular industry.

Each of these types of funds can be both aggressive and risky with a high level of reward possible, or they can be safer and lower risk. It all depends on which fund you choose.