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.

Income funds (mixed income funds - equity funds and bond funds)

Income funds that invest in both equity funds and bond funds are classified as income (mixed) funds. Income funds of this type seek a high level of current income for their mutual fund shareholders by investing in income producing securities, including both equity and debt instruments.

International funds

International funds invest in equity securities of companies located outside the US. Two thirds of the international funds portfolios must be invested equity securities of companies outside the US at al times to be categorized as international funds.

Long term municipal bond funds

Long term municipal bond funds invest in bonds issued by states and municipalities to finance schools, highways, hospitals, airports, bridges, water and sewer works, and other public projects. In most cases, income earned on these securities is not taxed by the federal government, but may be taxed under state and local laws. For some tax payers, portions of income earned on these securities may be subject to the federal alternative minimum tax.

Money market mutual funds

Money market mutual funds invest in the short term securities sold in the money market. These money market mutual funds are generally the safest, most stable securities available, including treasury bills, certificates of deposit (CDs) of large banks, and commercial paper (short term IOUs of large US corporations).

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