The investment market is a list of mutual funds to choose from. There are several investors in the market with its different needs, objectives and risk profiles. Therefore, a fund can not meet all the preferences of investors.
The classification of funds
Typically, a MF is divided into two categories:
"On the basis of implementation and operation
-On the basis of performance and investment structure
The list of> Investment funds for the implementation and operation are based on:
Open bottom - In this system, the body and the fund is not fixed in advance. You can buy and sell an unlimited number of shares at any time. The main characteristics of these funds are flexible, immediate liquidity, not to the public on any trade, its ability to buy and sell, and so on. The main objective is income, and their prices are the net asset value (NAV) of the correspondingUnits.
Fast closed-end funds - In this scheme, the body and the life of the fund is given. The fund will lapse if the subscription is fully committed. The main objective is capital appreciation. Because they are traded, market trends (both positive and negative), the impact on the performance of the Fund.
The list of mutual funds based on performance and structure of investments:
The sources of income - the primary purpose of this mechanism is to generateand the distribution of income and investors on a regular basis. The income generated is generally higher than that of bank deposits. The complex structure of the rule, addressed to the production of high-income and fixed. This is the best option for retirees.
-Growth Fund - are targeted to create venture capital funds in the long term and not regular income. Also known as a "nest of funds. The investment strategy focusesMeasures that have a tolerance for risk and high growth potential. It's best if you are employed or if you are a businessman.
Balanced Fund - These funds are a combination of sources of income and growth mutual. Also known as "income-cum-growth" fund of note. They focus primarily on distribution of income and capital gains. The structure of investment are offset between the values that give a strong economic growth and high debt.
Specialists Targeted Fund - These funds are to meet the specific needs of certain groups of people. This fund allows foreign investors to invest in domestic securities of other countries. Generally limited to one sector or industry. These funds are very risky and is used to get into a good choice for high risks.
Money Market Mutual Fund (AMF) - Similar to open-end funds and have all the characteristics of aCampo has been abolished. But the differences in investment strategy, invests in money market instruments such as treasury bills, commercial paper and others.
Tax Fund - The Fund is essentially a growth of Finance. The only difference is that it provides tax breaks for investors. This is the best option if you are an employee and you may qualify for the refund of taxes.
Few other classifications of mutual funds
In addition to the classification above,is another list of mutual funds. They are:
Leverage funds - also known as "money borrowed". They are bound to increase mainly because of the size of the value of a portfolio of funds.
Raised floor - This is a special form of closed-end funds. They offer two different types of investors the opportunity to make a single investment.
Index Fund - the Fund's portfolio are designed to move in line with the market index.
Bond Fund --These funds generate income. The portfolio consists mainly of stocks and bonds, that the ability to generate stable returns.
-Aggressive Growth Fund - These funds focus more on capital gains. They are very volatile and are generally invested in highly speculative securities.
Off-shore funds - These funds are for non-residential investors. These funds are registered abroad. Contains countryExchange risk, but the returns are high.
Thus, the decision to invest in mutual funds, depends entirely on your needs and risk profile. You can choose a fund that fits their profile in the list above of mutual funds.