There are many types of Mutual Funds
In fact, there are more Mutual Funds and Exchange
Traded Funds (ETFs) than there are stocks
on the New York Stock Exchange. Today, there
are over 10,000 different mutual funds from
which to choose.
Following are just some of the various types
of mutual funds available for investing:
-
Loaded Mutual Funds:
Are sold by full service brokerage firms
and carry a fairly steep commission.
-
No-Load Mutual Funds:
Can be purchased directly from the mutual
fund family or from discount brokers who
handle a large number of different mutual
fund families. No-Load
Funds can be purchased with no transaction
fees or only very small commissions.
-
Money Market Funds:
Offer a place to park money when waiting
to make a new investment. They offer interest
rates more than double that available from
bank savings accounts or checking accounts.
-
U.S. Government Bond Funds:
Invest in U.S. Treasury Bonds, Notes, or
Bills. This is a safer form of investing
than in other types of bond funds.
-
Corporate Bond Funds:
Invest in the debt obligations of U.S. Corporations.
These mutual funds generate higher yields
but involve higher risk.
-
Municipal Bond Funds:
Invest in tax-exempt bonds issued by various
States and municipalities. The yield on
these investments is generally tax exempt
from federal income taxes.
-
Stock Funds:
Invest in common stocks. They can be very
broadly diversified or highly concentrated.
There are funds that focus on growth, others
concentrate on value. Some are index funds.
Others are International funds that concentrate
their investments outside the United States.
Global Funds have holdings both internationally
as well as in the United States. There are
sector funds that invest in only one sector
of the market such as energy, healthcare,
or consumer stocks.
Click here to learn more about investing
in the stock market.
-
Exchange Traded Funds (ETFs):
Is the fastest growing segment of the financial
industry today. There are over 500 ETFs
from which to choose. Exchange
Traded Funds offer all of the advantages
of Mutual Funds but none of the disadvantages
such as minimum holding periods and early
redemption fees. They are priced continuously
throughout the day and can be purchased
and sold just like a stock. Mutual Funds
are priced only at the end of the day based
on the net asset value of all of the holdings
within the fund.
-
Rebound Trading Systems:
Offers 5 different robust trading systems
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Traded Funds. With the multiplicity of Mutual
Funds and ETFs from which to choose it is
important to have a system for selecting
and trading mutual funds that has stood
the test of time.
Click below to learn more about how our trading
systems helps you to select the best types of
mutual funds:
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