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Mutual Funds

A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities. Mutual funds give small or individual investors access to diversified, professionally managed portfolios at a low price. Mutual funds are divided into several kinds of categories, representing the kinds of securities they invest in, their investment objectives, and the type of returns they seek. The overwhelming majority of money in employer-sponsored retirement plans goes into mutual funds.

- Equity Fund
Stock funds that can be managed actively or passively. Are the riskiest class of mutual funds, and hence, they have the potential to provide higher returns than debt and hybrid funds.

- Money-Market Fund
A kind of mutual fund that invests in highly liquid, near-term instruments.

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