Types of Mutual Funds - Mandiri Investasi (2024)

FAQs

What are the 4 types of mutual funds? ›

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.

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.

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.

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 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.

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 type of mutual fund gives the highest return? ›

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.

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.

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.

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.