Types of Mutual Funds Available

Types of Mutual Funds Available:

• Domestic Equity Funds - These mutual funds mainly focus on stocks offered by different U.S. companies. With this type of fund there is a wide range of offerings that takes into consideration the size of the company, the stability of the company, growth and the potential valueof the company.
  
• Global/International Funds - Global or International mutual funds mainly allow the investor to include foreign equities into their investments. Although deemed slightly riskier their values do tend to go up when domestic equities drop, offering a balance to the investors portfolio.
  
• Sector Funds - sector funds give the investor a way to focus on specific parts of the business world. For example, niches like real estate, precious metals or financials. If an investor is able to tolerate an amount of risk, they may end up benefiting from investing in this way. Particularly if the investor knows something about that market segment.
  
• Fixed Income Funds - fixed income mutual funds tend to be less volatile. This is the right fund for an investor who is looking for income. Fixed mutual funds for the most part are made up of bonds, CD's and money market funds. Yes, they do fluctuate with interest rates, still are a sound investment for someone looking for an income generating portforlio.
  
• Hybrid Funds - Hybrid mutual funds are generally made up of different investment sectors in one mutual fund. For example, a usual mix may be the pairing of equities with bonds or blue chip stocks with riskier ones.
  
• Index Funds - Index mutual funds imitate the selections and amounts of specified market indexes like the S&P 500. They are generally unmanaged keeping costs down.
  
• Enhanced Index Funds - Enhanced index funds are actively managed funds applying a portion of their resources to outperform their benchmark indces.
  
• Asset Allocation Funds - Asset allocation funds target investors who want a single product solution. They are designed to invest across the primary asset classes including equities, fixed income securities and money market. Each fund is allocated among different asset classes according to their risk tolerances.
  
• Conservative Allocation Funds - Conservative allocation mutual funds are usually for
  investors with a minimum five-year investment timeframe.