FAQs
The majority of mutual funds can be classified into four primary categories: Bond funds, Money Market funds, Target date funds, and Stock funds. Each category possesses distinct characteristics, risks, and potential returns. Below is a comprehensive enumeration of mutual fund types.
Which are types of mutual funds quizlet? ›
Accounting: What the Numbers Mean
- growth funds. invest in stocks of companies whose businesses are growing rapidly. ...
- income funds. ...
- growth and income funds. ...
- index funds. ...
- balanced funds. ...
- asset allocation funds. ...
- Bond funds. ...
- Tax free bond funds.
What are the 3 main groups of mutual funds? ›
Mutual funds are broadly classified into Equity Funds, Debt Funds, Hybrid Funds, Solution Oriented Funds and other schemes (Index Funds and Funds of Funds). Based on the underlying assets these funds are categorised.
Which of the 3 main types of mutual funds is the safest and has the least return? ›
Money Market Mutual Funds
The money market consists of safe, risk-free, short-term debt instruments, mostly government Treasury bills. The returns on them aren't substantial.
Which is the safest mutual fund? ›
Overview of the Best Low Risk Mutual Funds
- Tata Arbitrage Fund. ...
- Edelweiss Arbitrage Fund. ...
- Invesco India Arbitrage Fund. ...
- Kotak Equity Arbitrage Fund. ...
- Nippon India Arbitrage Fund. ...
- Axis Arbitrage Fund. ...
- HSBC Arbitrage Fund. ...
- Baroda BNP Paribas Arbitrage Fund.
What are the 4 P's of mutual funds? ›
These four Ps are 1) Planning, 2) Patience,3) Performance and 4) Persistent. These four Ps are traits of investments which can help us achieve not just the financial goals but also make us get handsome returns from the market.
What are the most common types of mutual funds? ›
What types of mutual funds are there? Most mutual funds fall into one of four main categories – money market funds, bond funds, stock funds, and target date funds. Each type has different features, risks, and rewards. Money market funds have relatively low risks.
How many mutual fund categories are there? ›
- Equity Schemes
1. | Multi Cap Funds |
---|
2. | Large Cap Funds |
3. | Large & Mid Cap Funds |
4. | Mid Cap Funds |
5. | Small Cap Funds |
6 more rows
What is not a type of mutual fund? ›
Detailed Solution. The correct answer is Depository. From the passage 'A mutual fund is set up in the form of a trust which has (i) a sponsor, (ii) trustee, (iii) Asset Management Company (AMC) and (iv) custodian.
Which category mutual fund is best? ›
Open Trading Account
Category | 1Y | 2Y |
---|
Equity: Large Cap Fund Equity: Large Cap Fund | 30.3% | 23.1% |
Equity: Large & Mid Cap Fund Equity: Large & Mid Cap Fund | 32.4% | 28.2% |
Equity: Mid Cap Fund Equity: Mid Cap Fund | 46.7% | 34.6% |
Equity: Small Cap Fund Equity: Small Cap Fund | 31.1% | 27.9% |
29 more rows
Equity mutual funds invest predominantly in equity instruments such as stocks. These funds have the potential to offer the highest returns among all mutual funds.
What type of mutual fund is the most risky? ›
Growth funds invest in growth stocks and seek capital appreciation. They're generally considered riskier than other types of mutual funds but may provide potentially higher returns.
What are the three general types of mutual funds quizlet? ›
The three general types of mutual funds are BLANK-end, BLANK-traded, and open-end funds. True or false: To purchase a closed-end mutual fund, you would purchase shares directly from the mutual fund company at any time.
What is the safest type of investment? ›
Overview: Best low-risk investments in 2024
- High-yield savings accounts. ...
- Money market funds. ...
- Short-term certificates of deposit. ...
- Series I savings bonds. ...
- Treasury bills, notes, bonds and TIPS. ...
- Corporate bonds. ...
- Dividend-paying stocks. ...
- Preferred stocks.
Which is the best type of mutual fund? ›
List of Best Mutual Funds in India sorted by Returns
- HYBRID Aggressive Hybrid. ...
- HYBRID Dynamic Asset Allocation. ...
- HYBRID Retirement Solutions. ...
- HYBRID Multi Asset Allocation. ...
- HYBRID Aggressive Hybrid. ...
- UTI Aggressive Hybrid Fund. ...
- Bank of India Credit Risk Fund. ...
- Kotak Multi Asset Allocator FoF - Dynamic. HYBRID Hybrid FoF.
What is the most common mutual fund? ›
Most Popular
- #1. BNY Mellon Corporate Bond Fund BYMMX.
- #2. Miller Intermediate Bond Fund MIFIX.
- #3. Calvert Income Fund CFICX.
What is the best mutual fund to invest in in 2024? ›
Summary: Best Mutual Funds
Fund (ticker) | 10-Year Avg. Ann. Return |
---|
Fidelity International Index Fund (FSPSX) | 5.10% |
Fidelity U.S. Sustainability Index Fund (FITLX) | 14.77% since inception (May 2017) |
Schwab S&P 500 Index Fund (SWPPX) | 12.70% |
Shelton Nasdaq-100 Index Investor Fund (NASDX) | 17.09% |
6 more rowsSep 4, 2024
What four types of mutual funds does Dave Ramsey recommend? ›
Ramsey often recommends allocating investments into four types of mutual funds: growth, growth and income, aggressive growth, and international funds. This diversification strategy helps protect against market volatility and ensures a balanced approach to retirement savings.