What Are The Different Types Of Mutual Funds?

  • Growth funds invest in undervalued, small-cap companies with above-the-average growth because their primary goal is capital appreciation.
  • Value funds invest in stocks of companies that are considered undervalued because they want to have greater safety and potential for appreciation.
  • Blue-chip funds main goal is income and safety, that’s why they invest in well-established and financially solid companies.
  • Sector funds invest in a particular area of the economy or an industry, such as technology, healthcare, real estate, agriculture, etc. These funds usually offer higher appreciation potential but there is also a higher risk involved due to lack of diversification. However, some investors choose to put their money on them on account of their specific knowledge in the sector, or they could predict its bright future.

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Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Personal finance expert, investor for more than 15 years, digital marketer and founder of The Smart Investor (https://thesmartinvestor.com).