Stocks options and mutual funds explained
Examples include gold funds gold mining stock , technology funds, and utility funds. An equity income fund stresses current income over growth.
The funds objective may be accomplished by investing in the stocks of companies with long histories of dividend payments, such as utility stocks, blue-chip stocks, and preferred stocks. Option income funds invest in securities on which options may be written and earn premium income from writing options. They may also earn capital gains from trading options at a profit. These funds seek to increase total return by adding income generated by the options to appreciation on the securities held in the portfolio.
Balanced Funds invest in stocks for appreciation and bonds for income. The goal is to provide a regular income payment to the fund holder, while increasing its principal A fund that owns stocks and a substantial amount of assets other than stocks is considered an asset allocation fund.
A fund that switches between asset classes based on predictions of future returns is called a tactical allocation fund. Other funds may maintain a more or less constant proportion of assets, due to the belief that such prediction is not reliable. The other funds may be stock funds, in which case the original fund can be called "fund of stock funds".
See fund of funds. Hedge funds often trade stocks, but may trade or invest in anything else depending on the fund. This is done to reduce the risk of investments in stocks. From Wikipedia, the free encyclopedia. This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources.
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Stock fund Bond fund Money market fund. Real estate investment trust Private equity fund Venture capital fund , Mezzanine investment funds , Vulture fund Hedge fund. Long-only fund Stable value fund. Mutual fund Open-end fund Exchange-traded fund Closed-end fund Real estate investment trust. Hedge fund Private equity fund Pooled income fund Endowment fund Pension fund Sovereign wealth fund Sovereign investment fund. Banks and credit unions can provide a safe and convenient way to accumulate savings—and some banks offer services that can help you manage your money.
Checking and savings accounts offer liquidity and flexibility. Find out more about these and other bank products.
Learn how corporate, muni, agency, Treasury and other types of bonds work. Learn more about your choices—from penny-stocks to large caps and more.
Funds—such as mutual funds, closed-end funds and exchange-traded funds—pool money from many investors and invest it according to a specific investment strategy. Funds can offer diversification, professional management and a wide variety of investment strategies and styles.
But not all funds are the same. Understand how they work, and research fund fees and expenses. An annuity is a contract between you and an insurance company, in which the company promises to make periodic payments, either starting immediately—called an immediate annuity—or at some future time—a deferred annuity.
Learn about the different types of annuities. Funding college begins with savings, starting with how much to save. Numerous types of investments come into play when saving for retirement and managing income once you retire. For saving, tax-advantaged retirement options such as a k or an IRA can be a smart choice.
Managing retirement income may require moving out of certain investments and into ones that are better suited to a retirement lifestyle.