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.

Precious metals and gold mutual funds

Precious metals and gold mutual funds maintain two-third of their mutual fund portfolios invested in securities associated with gold, silver, and other precious metals.

Short term municipal bond funds

Short term municipal bond mutual funds invest in municipal bonds with relatively short maturities. These mutual funds are also known as tax exempt money market mutual funds. For some taxpayers portions of income from these municipal bond funds may be subject to the federal alternative minimum tax.

Long term state municipal bond funds

Long term state municipal bond funds work just like other long term municipal bond funds except that their portfolios contain the issues of only one state. A resident of that state has the advantage of receiving income free of both federal and state tax. For some taxpayers, portions of income from long term state municipal bond funds may be subject to the federal alternative minimum tax.

Short term state municipal bond funds

Short term state municipal bond funds work just like other short term municipal bond funds except their portfolios contain the issue of only one state. A resident of that state has the advantage of receiving income free of both state and federal tax. For some taxpayers, portions of income from these securities may be subject to the federal alternative minimum tax.

US Government income funds

US Government income funds invest in a variety of government securities. These government securities include US Treasury bonds, federally guaranteed mortgage backed securities, and other government notes.