What Are the Different Types of Mutual Funds Classes?
There are essentially three mutual funds classes available to investors and each of them is divided by the rate of overall growth. Money market funds are the safest of the three choices since they are low-yield investments like treasury bills. Bonds are the second of the mutual funds classes, and they offer a fixed amount of return at a maturity date. Stocks make up the rest of the mutual fund classes; they offer the highest return on investment, but also carry the largest risk. A few of the mutual fund options also combine the conservative approach of bonds with the growth potential of stocks to provide an additional upside during strong markets.
