Investment funds are several subcategories, which are defined by their unique characteristics. Among the many subcategories such as pension funds that invest in bonds and other securities. Unlike other types of investments that typically pay regular dividends and interest, more often than other investment in the category of mutual funds.
One important thing to note thatThe dividends, which are much more than many other types of investments such as CDs and money market accounts payable. Pension funds are available in several categories, characterized by primary securities and assets that invest in There are four main categories and differ in one way or another essay.
One category is the government, government bonds, which have, as the risk factor low. This is simply becausesupported by the Ministry of the Treasury, and therefore the loss of investment is highly unlikely. Mortgage bonds issued by government agencies, such as the Government National Mortgage Association. They also have a low risk because of the mortgage agencies, which are protected in that case, owned by the government.
The third category is a corporate bond is like the name says, offered by companies. You will be guaranteed by the issuer and the risk factor is low. This isexplained by the fact that an investor could lose money if the company fails. The last category is that of municipal bond funds have been adopted by local governments. Other types of classification are based on the statement or the length of maturities. Maturity is whether the investment is long, short or medium term.