5705329601_c6ce8c051aIntroduction to Mutual Funds – Types of mutual funds

Article number 4 in the mutual fund series (For the previous article – Disadvantages of mutual funds)

Classifying mutual funds is always a nightmare. There are tens of thousands of mutual funds out there and trying to classify them into a fund type would be very difficult. However broadly and conceptually we can classify any mutual fund by asking ourselves the following five questions

Question 1 – Does the mutual fund invest exclusively in one asset class (like stocks only fund, bonds only fund, money market instruments only fund, Gold/commodity only fund?) or does it diversify across asset classes (say 60% stocks, 20% bonds, 10% gold, 10% money market funds or something like that)? More »