Concept explainers
To discuss:
The portfolio of the types of mutual funds.
Introduction:
Mutual fund refers to the fund that consists of the pool of money from various different investors and is done by trained professionals who has a great experience in the field in order to purchase different and various securities that can provide good returns to the investors.
Bond mutual fund refers to the bond mutual fund refers to the funds that hold less of the proportion of stock and currency and more of the proportion of the fixed income securities and The bond mutual fund provides return with the minimum risk.
Stock mutual funds refer to the fund that holds the very least value of currency and bonds and mainly holds the major of the proportion of stock and this fund basically holds the stock that has the potential to grow at a much faster rate.
Balanced mutual fund refers the fund that invests in equal proportion in the bonds and stocks to achieve growth and to minimize risk as well.
The fund provides constant returns and is less risky.
Life cycle and retirement fund:
Life cycle and retirement fund refers to fund whose main motive is to identify the objectives of the investors and invest according to that.
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