{"id":545,"date":"2009-10-30T11:05:06","date_gmt":"2009-10-30T05:35:06","guid":{"rendered":"http:\/\/www.niftylivecharts.com\/blog\/?p=545"},"modified":"2009-10-30T11:07:08","modified_gmt":"2009-10-30T05:37:08","slug":"types-of-mutual-funds","status":"publish","type":"post","link":"https:\/\/www.niftylivecharts.com\/blog\/types-of-mutual-funds\/","title":{"rendered":"Types of Mutual funds."},"content":{"rendered":"<p>Most funds follow a particular strategey\u00a0 when investing. For instance, some invest only in Blue Chip companies that are more established and are relatively low risk. On the other hand, some focus on high-risk start up companies that have the potential for double and triple digit growth. Finding a mutual fund that fits your investment criteria and style is important.<\/p>\n<h2>Types of mutual funds are:<\/h2>\n<p><strong>Value stocks<\/strong><br \/>\nStocks from firms with relative low Price to Earning (P\/E) Ratio,is\u00a0 usually expected to pay good dividends. The investor is looking for income rather than capital gains.<\/p>\n<p><strong>Growth stock<\/strong><br \/>\nStocks from firms with higher low Price to Earning (P\/E) Ratio, usually pay small dividends. The investor is looking for capital gains rather than income.it is based on the company&#8217;s size .<\/p>\n<p><strong>Income stock<\/strong><br \/>\nThe investor is looking for income which usually comes\u00a0 from dividends or interest. These stocks are from firms which pay relative high dividends. This fund may include bonds which pay high dividends. This fund is much like the value stock fund, but accepts a little more risk and is not limited to stocks.<\/p>\n<p><strong>Index funds<\/strong><br \/>\nThe securities in this fund are the same as in an Index fund such as the Dow Jones Average or Standard and Poor&#8217;s. The number and ratios or securities are maintained by the fund manager to mimic the Index fund it is following.<\/p>\n<p><strong>Enhanced index<\/strong><br \/>\nThis is an index fund which has been modified by either adding value or reducing volatility through selective stock-picking.<\/p>\n<p><strong>Stock market sector<\/strong><br \/>\nThe securities in this fund are chosen from a particular marked sector such as Aerospace, retail, utilities, etc.<\/p>\n<p><strong>Defensive stock<\/strong><br \/>\nThe securities in this fund are chosen from a stock which do not have any impact of by economic down turns.<\/p>\n<p><strong>International<\/strong><br \/>\nthese are the stocks from international firms.<\/p>\n<p><strong>Real estate<\/strong><br \/>\nStocks from firms involved in real estate such as builder, supplier, architects and engineers, financial lenders, etc.<\/p>\n<p><strong>Socially responsible<\/strong><br \/>\nThis fund would invests according to non-economic guidelines. Funds may make investments based on such issues as environmental responsibility, human rights, or religious views. For example, socially responsible funds may take a proactive stance by selectively investing in environmentally-friendly companies or firms with good employee relations. Therefore the fund would avoid securities from firms who profit from alcohol, tobacco, gambling, pornography etc.<\/p>\n<p><strong>Balanced funds<\/strong><br \/>\nThe investor may wish to balance his risk between various sectors such as asset size, income or growth. Therefore the fund is a balance between various attributes desired.<\/p>\n<p><strong>Tax efficient<\/strong><br \/>\nAims to minimize tax bills, such as keeping turnover levels low or shying away from companies that provide dividends, which are regular payouts in cash or stock that are taxable in the year that they are received. These funds still shoot for solid returns; they just want less of them showing up on the tax returns.<\/p>\n<p><strong>Convertible<\/strong><br \/>\nBonds or Preferred stock which may be converted into common stock.<\/p>\n<p><strong>Junk bond<\/strong><br \/>\nBonds which pay higher that market interest, but carry higher risk for failure and are rated below AAA.<\/p>\n<p><strong>Mutual funds of mutual funds<\/strong><br \/>\nThis funds that specializes in buying shares in other mutual funds rather than individual securities.<\/p>\n<p><strong>Closed end<\/strong><br \/>\nThis fund has a fixed number of shares. The value of the shares fluctuates with the market, but fund manager has less influence because the price of the underlining owned securities has greater influence.<\/p>\n<p><strong>Exchange traded funds (ETFs)<\/strong><br \/>\nBaskets of securities (stocks or bonds) that track highly recognized indexes. Similar to mutual funds, except that they trade the same way that a stock trades, on a stock exchange.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Most funds follow a particular strategey\u00a0 when investing. For instance, some invest only in Blue Chip companies that are more established and are relatively low risk. On the other hand, some focus on high-risk start up companies that have the potential for double and triple digit growth. Finding a mutual fund that fits your investment [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[1836,1831,1833,1832,683,1834,1830,1818,1835,1829],"class_list":{"0":"post-545","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-general","7":"tag-basics-of-mutual-funds","8":"tag-how-to-invest","9":"tag-income-funds","10":"tag-investing","11":"tag-investment-funds","12":"tag-list-of-mutual-funds","13":"tag-managed-funds","14":"tag-mutual-funds-investment","15":"tag-type-of-mutual-funds","16":"tag-types-of-mutual-funds","17":"entry"},"_links":{"self":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/545","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/comments?post=545"}],"version-history":[{"count":0,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/545\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/media?parent=545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/categories?post=545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/tags?post=545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}