Different types of mutual funds and their investment objectives

Mutual Funds

In the age of capitalism , people seek many ways to achieve financial stability and safety . One method people use to achieve that goal is investment . Mutual funds have been one of the type of investment or retirement plans because the investment portfolio is flexible and can be adjusted by the fund manager to suit the economic situation . Instead of investing in a specific government bond or company stock , mutual funds combine different forms of investment into a single portfolio . The three most popular types of mutual funs are stock

funds , bond funds and money market funds . They differ by the objective and length of investment

Stock funds are investments in the stock market . The main objective of this investment is to either increase the value of the portfolio by growth or to earn regular incomes by collecting dividends or a combination of both . The stock market is a very large market with different sectors of varying risks . The two main types of stock funds are growth funds and value funds . Investment in growth funds focus on growing companies that don 't pay out dividends but can increase the value of their stocks through growth . It is geared towards investors who seek long term gain . On the other hand , value funds or income funds are invested to older companies that regularly pay dividends . These choices are available to potential investors so they can decide for themselves what they want in their investment

Bond funds are mutual funds that...