Financial Markets For The Rest Of Us|
An Easy Guide To Money, Bonds, Futures, Stocks, Options, And Mutual Funds
Mid-Cap Fund - Invested in mid-cap stocks such as those in the
S&P MidCap 400 Index.
Value And Growth Fund - These are mostly stock funds. We will cover these in the next section.
Bond Fund - Invested mainly (if not entirely) in bonds such as the long bond, mortgage-backed bonds, municipal, or corporate bonds. This type of fund is also known as fixed-income fund since it makes payments to its investors (usually on a monthly basis) which it derives from the interest (coupon) payments on its bonds that comprise its portfolio.
Money Market (Cash) Fund - Invested mainly in short-term securities with maturities of one year or less. These include securities such as Treasury bills, CDs, and short-term corporate bonds.
Balanced (Hybrid) Fund - Invested in a mixture of stocks, bonds, and sometimes money market instruments. A popular type of a balanced fund is the asset allocation fund, which makes adjustments to the percentages of bonds and stocks in its portfolio depending on market and economic conditions. …
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