Types of open end mutual funds (continued..)

There are many types of mutual funds or open end mutual funds. Below are some more types of open end mutual funds.

GNMA or Ginnie Mae mutual fund

GNMA or Ginnie Mae mutual fund invests in mortgage securities backed by the Government National Mortgage Association (GNMA). To qualify for this mutual fund category, the majority of the mutual fund portfolio must always be invested in mortgage-backed securities.

Global bond mutual funds

Global bond mutual funds invest in the debt securities of companies and countries worldwide, including the US.

Global equity mutual funds

Global equity mutual funds invest in securities traded worldwide including the US. Compared to direct investments, global equity mutual funds offer investors an easy way to investing abroad.

The mutual fund managers handle the trading and record keeping details and deal with differences in currencies, languages, time zones, laws and regulations, and business customs and practices. However, global mutual funds, if investing in foreign currencies, can pose another type of risk to investors - exchange rate risk.

Growth mutual funds

Growth mutual funds invest in the common stock of well established companies. Growth mutual funds ' primary aim is to produce an increase in value of their investments or capital gains rather than dividend income and current income. Investors who invest in growth mutual funds are generally more interested in seeing the mutual fund 's share price rise than receiving income from dividends.

Click here to read more of other types of mutual funds.