Types of Mutual Funds
Friday, January 20th, 2012In today’s world, the potential investor has an array of options in which to place his resources. This is true in the mutual fund area as well. Mutuals funds are appropriate for most HB Capital investors, but knowing which type of mutual fund to invest in is very important. Some mutual funds invest only in stocks to the exclusion of bonds or other investment instruments. Stock funds may be general in that they invest in any stock in any category. There are other stock mutual funds that only hold stocks from Fortune 500 companies. Some funds invest in only large, mid, or small cap stocks. Some stock mutual funds are even more specific. Sector funds only invest in the stocks of a certain industry such as financials, mining, health, etc. In addition, some stock mutual funds limit their holdings to stocks from a particular country or region. HB Capital can provide the investor with detailed information on all types of stock mutual funds. Another large category of mutual funds are bond funds. As the name suggests, bond funds hold bonds as their major asset class. Bond funds may be a mix of government and corporate bonds, or the fund may specialize in one or the other. Many mutual funds are a mix of both stocks and bonds. The mix between stocks and bonds in these funds will be determined by the amount of risk the investor is willing to take. HB Capital can provide comprehensive answers to all investor’s questions regarding each type of mutual fund in this class.