Types of Mutual Funds

By Cheryl Sperling

In the US, there are 10,000 kinds of mutual funds and here in the Philippines there are only fewer than a 100. But Mutual Funds can be classified into 4 types as follows: Bond Fund, Stock Fund, Money Market Fund, and Balanced Fund. They are so named in accordance to where the Mutual Fund is invested in.

                                                           Courtesy of IMG

How then will we choose which kind of mutual fund we will invest in? The answer is based on your investment risk appetite and/or your

What Is A Mutual Fund?

By Cheryl Sperling

A mutual fund is a type of investment wherein which a "a group of investors" or an investment company pools money from many investors to buy stocks, bonds, or other money market instruments and is managed by a Fund Manager. This is a better option to investing directly, say in the stock market, especially if one has no time to do the research on individual companies and have no technical expertise in stock trading.

                                                                 Courtesy of IMG

From the diagram above, we can see that many investors buy shares on a Mutual Fund of their choice and then the Mutual Fund Company will buy