Fast Quick Answer
  • Finance
    The Best Small Business Loans
  • Finance
    The Myths of Online Credit Card Processing Busted
  • Finance
    Find The Best Personal Loan Rate For You
Fast Quick Answer
    • Health
      • Diagnosing Pneumonia

        Diagnosing Pneumonia

      • What is Type 2 Diabetes?

        What is Type 2 Diabetes?

      • 9 Possible Causes of Early Menopause

        9 Possible Causes of Early Menopause

      • What You Should Know About Hemorrhoids

        What You Should Know About Hemorrhoids

      • Reasons for Tooth Decay

        Reasons for Tooth Decay

      • Osteoporosis: What is it?

        Osteoporosis: What is it?

    • Medical
      • Facts you Should Know about Breast Cancer

        Facts you Should Know about Breast Cancer

      • What Are the Stages of Pancreatic Cancer?

        What Are the Stages of Pancreatic Cancer?

      • Treatment of Deep Vein Thrombosis

        Treatment of Deep Vein Thrombosis

      • How Is Hepatitis C Transmitted?

        How Is Hepatitis C Transmitted?

      • Miscarriages: What You Need To Know

        Miscarriages: What You Need To Know

      • Prognosis Of Lung Cancer

        Prognosis Of Lung Cancer

    • Business
      • 5 Things You Should Buy On Black Friday

        5 Things You Should Buy On Black Friday

      • How to Form an LLC

        How to Form an LLC

      • Killer Cover Letter For A Job

        Killer Cover Letter For A Job

      • Setting Up a Business Internet Service? Here are Your Options

        Setting Up a Business Internet Service? Here are Your Options

      • Internet Provider Review: Mediacom

        Internet Provider Review: Mediacom

      • Pros and Cons of Small Business Payroll Softwares

        Pros and Cons of Small Business Payroll Softwares

    • Finance
      • 10 Things to Know About Dividend Stock Investing

        10 Things to Know About Dividend Stock Investing

      • Where you Can Find Tax Relief Services

        Where you Can Find Tax Relief Services

      • Use your Smartphone to Transfer Money with these 5 Apps

        Use your Smartphone to Transfer Money with these 5 Apps

      • Find The Best Personal Loan Rate For You

        Find The Best Personal Loan Rate For You

      • How Can You Get Out Of Your Long Term Car…

        How Can You Get Out Of Your Long Term Car…

      • What Can You Do If You Can’t Pay Your Taxes?

        What Can You Do If You Can’t Pay Your Taxes?

    • Tech
      • Network Security Explained

        Network Security Explained

      • How to Choose a Satellite Internet Provider

        How to Choose a Satellite Internet Provider

      • The Top 5 Home Security Systems

        The Top 5 Home Security Systems

      • Hybrid Cloud Computing Security Service

        Hybrid Cloud Computing Security Service

      • How Video Conferencing can Improve your Business

        How Video Conferencing can Improve your Business

      • Hybrid Cloud Security Solutions for Small Business

        Hybrid Cloud Security Solutions for Small Business

    • Auto
      • The 5 Best Midsize Luxury Cars of 2017

        The 5 Best Midsize Luxury Cars of 2017

      • Top Hybrid Cars: Ford C-MAX

        Top Hybrid Cars: Ford C-MAX

      • Covering Your Classic Car

        Covering Your Classic Car

      • Can your Bad Credit Affect your Auto Insurance

        Can your Bad Credit Affect your Auto Insurance

      • Top 5 Crossover Vehicles With Parking Assist

        Top 5 Crossover Vehicles With Parking Assist

      • 5 Top Crossover SUVs of 2017

        5 Top Crossover SUVs of 2017

      Fixed Income Mutual Funds and 6 Other Types of Mutual Funds

      by Stephanie Donnely

      Simply a collection of stocks and/or bonds, a mutual fund is a company that invests the money belonging to a group of people in stocks, bonds, and other similar things. While these are generally very simple to buy, there’s a lot of planning done beforehand. There are seven different types of mutual funds, and each comes with its own benefits and disadvantages that need to be considered.

      Money Market Funds

      Money market funds are one of the lowest earners but are also incredibly safe. They consist strictly of short-term debt instruments like Treasury bills. Since the instruments are always paid off, there’s no risk of losing your principal, but you don’t make a lot in returns. Typically, money market funds earn more than a typical savings account but less than a certificate of deposit.

      Bond/Income Funds

      Designed to provide current income on a steady basis, the bond/income fund invests mainly in government and corporate debt. They are generally not risky, but there are some issues to be aware of. A fund specializing in junk bonds is very risky because all bond funds are at the mercy of rising interest rates; meaning if the rates go up, the fund value decreases.

      Balanced Funds

      Balanced funds invest in a mixture of safety, income, and capital appreciation. In general, they invest in 60% equity and 40% fixed income to provide guaranteed growth while taking a few risks to maximize gains. In most cases, the percentage is fixed, but a certain type, known as an asset allocation fund, allows the portfolio manager to alter the ratio of asset classes to adapt to the current economy.

      Equity Funds

      Equity funds are the largest of the seven types of mutual funds, and they aim for long-term capital growth with some income. The basic idea is to define companies based on those that are high quality, but out of favor with the market, and those that continually show steady growth. Balancing investments between the two lowers the risk factor, which makes equity funds a medium risk fund.

      Global/International Funds

      Global funds can invest in every fund, including those in your home country while international funds only invest in those outside of your home country. They tend to be high risk, yet they can also provide stability for your portfolio through diversification. Supporting countries with better economies than your own has the potential to yield great results.

      Specialty Funds

      Specialty funds are made up of sector funds, regional funds, and socially responsible funds. Sector funds are strictly for different parts of the economy and are arguably the riskiest. Regional funds focus on specific areas of the world, and, like sector funds, they are extremely risky. Socially responsible funds only invest in companies that adhere to certain guidelines or beliefs.

      Index Funds

      This fund replicates a broad market index under the assumption that most managers can’t beat the market. Because of this, there are low fees associated with it, and it carries a moderate risk.

      Featured Image: depositphotos/Imilian

      Posted on May 5, 2023
      Privacy Policy | Terms Of Use | Contact