TYPES OF MUTUAL FUNDS
Investors have more mutual funds available to them than there
are corporations issuing stocks and bonds. Mutual funds can be
categorized by their investment objectives: whether they are
growth, income, balanced, or variations of these. The area of the
market in which they invest, such as stocks or municipal bonds, can
classify them. Specific industries, like the energy industry, can
also classify them.
In this tutorial, we will break down mutual funds into their
objectives and markets. We will introduce you first to three major
objective-oriented groupings. Then we will explain several funds
that are classified by what areas of the securities world they
invest in. You will see that there is often some overlap, because
satisfying certain objectives often means investing in certain
areas of the market. The subjects covered will be these:
We will begin with growth funds.
