A fund is a pool of money set aside for a specific purpose. The pool of money in a fund is often invested and professionally managed in order to generate returns for its investors. Some common types of funds include pension funds, insurance funds, foundations, and endowments.

Most mutual funds fall into one of four main categories – money market funds, bond funds, stock funds, and target date funds


Types of Mutual Funds

  • Equity Funds.

Equity funds are the best mutual funds to invest in for the long term. Opt for a growth mutual fund option to easily reach your long-term goals, as the fund’s returns will compound over time.

  • Debt Funds.
  • Money Market Funds.
  • Hybrid Funds.
  • Growth Funds.
  • Income Funds.
  • Liquid Funds.
  • Tax-Saving Funds.

What is the purpose of funds?

A fund is cash saved or collected for a specified purpose, often professionally managed with the goal of growing the value of the fund over time. In investing, the most common example is a mutual fund, which pools money from shareholders to invest in a portfolio of assets such as stocks and bonds.

What is the 3 fund strategy?

A three-fund portfolio aims to diversify your portfolio across three asset classes: domestic stocks, international stocks, and domestic bonds. You can use a three-fund approach in most 401(k) accounts. Investors choose the allocation of funds that suit their goals.

What are the six categories of funds?

There are six common types of mutual funds:

  • Money Market Funds. Money market funds invest in short-term fixed-income securities. …
  • Fixed Income Funds. Fixed income funds buy investments that pay a fixed rate of return. …
  • Equity Funds. Equity funds invest in stocks. …
  • Balanced Funds. …
  • Index Funds. …
  • Specialty Funds.

What are the benefits of funds?

  • Safe: Investment funds are protected against insolvency. …
  • Broadly spread: Fund savers do not put all their eggs in one basket when building up their assets. …
  • Flexible: Fund savers can invest a larger sum once or regularly pay into a fund savings plan. …
  • Transparent:

Further information: Financial management and Managerial finance
Corporate finance and Strategic financial management
Finance is a field that deals with the study of money and investments. It includes the dynamics of assets and liabilities over time under conditions of different degrees of uncertainty and risk. In the context of business and management, finance deals with the problems of ensuring that the firm can safely and profitably carry out its operational and financial objectives; i.e. that it: (1) has sufficient cash flow for ongoing and upcoming operational expenses, and (2) can service both maturing short-term debt repayments, and scheduled long-term debt payments. Finance also deals with the long term objective of maximizing the value of the business, while also balancing risk and profitability; this includes the interrelated questions of (1) capital investment, which businesses and projects to invest in; (2) capital structure, deciding on the mix of funding to be used; and (3) dividend policy, what to do with “excess” capital.

  • Financial services businesses include banks, brokerage firms, credit unions, credit cards, insurance companies, asset and investment companies such as private-equity firms, private-equity funds, real estate investment trusts, sovereign wealth funds, pension funds, mutual funds, index funds, hedge funds, stock exchanges, and other companies that generate profits through investment and management of capital.