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.

Growth Fund and Income Funds

Growth fund and income funds invest in mainly the common stock of companies that have had increasing share value but also a solid record of paying dividends. Growth fund and income funds attempt to combine long term capital growth with a steady stream of income.

High yield bond mutual funds

High yield bond mutual funds maintain at least two-third of their mutual fund portfolios in lower rated corporate bonds (Baa rating or lower by Moody' s rating service and BBB or lower by Standard and Poor' s rating service). In return for a generally higher yield, investors must bear more risk than higher rated bonds.

Income funds (bond mutual funds)

Income funds or income bond funds seek a higher level of current income for their mutual fund shareholders by investing at all times in a mix of corporate and government bonds.

Income funds (equity mutual funds)

Income funds that invest in equity securities are sometimes called Income equity mutual funds. Income funds of this type seek a high level of current income for their mutual fund shareholders by investing primarily in equity securities of companies with good dividend paying records.

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