Types of Mutual Funds

There are many types of Mutual Funds

In fact, there are more Mutual Funds and Exchange Traded Funds (ETFs) than there are stocks on the New York Stock Exchange. Today, there
are over 10,000 different mutual funds from which to choose.

Following are just some of the various types
of mutual funds available for investing:


* Loaded Mutual Funds: Are sold by full service brokerage firms and carry
a fairly steep commission.

* No-Load Mutual Funds: Can be purchased directly from the mutual fund
family or from discount brokers who handle a large number of different mutual
fund families. No-Load Funds can be purchased with no transaction fees or
only very small commissions.

* Money Market Funds: Offer a place to park money when waiting to make
a new investment. They offer interest rates more than double that available
from bank savings accounts or checking accounts.

* U.S. Government Bond Funds: Invest in U.S. Treasury Bonds, Notes, or
Bills. This is a safer form of investing than in other types of bond funds.

* Corporate Bond Funds: Invest in the debt obligations of U.S. Corporations.
These mutual funds generate higher yields but involve higher risk.

* Municipal Bond Funds: Invest in tax-exempt bonds issued by various
States and municipalities. The yield on these investments is generally tax
exempt from federal income taxes.

* Stock Funds: Invest in common stocks. They can be very broadly diversified
or highly concentrated. There are funds that focus on growth, others concentrate
on value. Some are index funds. Others are International funds that concentrate
their investments outside the United States. Global Funds have holdings both
internationally as well as in the United States. There are sector funds that
invest in only one sector of the market such as energy, healthcare, or consumer
stocks.

* Exchange Traded Funds (ETFs): Is the fastest growing segment of the
financial industry today. There are over 500 ETFs from which to choose. Exchange
Traded Funds offer all of the advantages of Mutual Funds but none of the disadvantages
such as minimum holding periods and early redemption fees. They are priced
continuously throughout the day and can be purchased and sold just like a
stock. Mutual Funds are priced only at the end of the day based on the net
asset value of all of the holdings within the fund.


With the multiplicity of Mutual Funds and ETFs from which to choose it is important
to have a system for selecting and trading mutual funds that has stood the test
of time.