Mutual Funds To Invest In

Equity Funds

This type of fund usually sees higher returns but is slightly more risky and is subject to more market volatility. This is because this fund, sometimes known as a stock fund, is made up of a collection of individual stocks. While this fund is riskier than others on this list, it is far less risky than picking and choosing individual stocks to buy, because the majority of equity funds are well diversified among a variety of stocks in a variety of economic sectors. This way, if one sector is doing poorly on a particular trading day, other sectors that are doing better can help level this out and keep you from experiencing huge losses like you may if you invested exclusively in a small handful of stocks. These funds can also focus on a particular sector or industry if that is an avenue the investor would like to explore. Other ways these funds are created and categorized include market capitalization, risk tolerance, and geographic location.

Continue reading for a fund offering further diversification.