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Mid-Cap Fund - Invested in mid-cap stocks such as those in the S&P MidCap 400 Index.
Small-Cap Fund - Invested in small-cap stocks such as those in the Russell 2000 index.
Sector Fund - Invested in stocks from a particular sector such as financial or technology.
International Fund - Invested in foreign stocks and bonds such as those from Japan or Germany. Some of these funds may also invest in domestic securities. This type of fund is sometimes referred to as world or global fund.

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. …