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Category of Mutual Funds

1. What category of mutual fund invests in stocks and bonds issued by corporations that have a history of socially responsible actions?

2. What category of mutual fund invests in risk oriented common stocks of new companies that promise large returns?

3. What category of mutual fund divides their investments among stocks, bonds, and cash in a stable mix? (e.g. 60 30 10 which does not vary)

4. What category of mutual fund invests in corporate bonds?

5. What category of mutual fund invests in stocks or bonds of corporations throughout the world, including the United States?

6. What category of mutual fund invests in stocks and bonds issued by firms in either foreign countries or specific regions in the world? The United States is excluded?

7. What category of mutual fund invests in common stocks of well managed, rapidly growing corporations?

8. What category of mutual fund invests in common and preferred stocks that pay high dividends and are expected to increase in market value?

9. What category of mutual fund invests in lower rated corporate bonds called high yield bonds or junk bonds to achieve higher income than a traditional corporate bond fund?

10. What category of mutual fund invests in stocks and bonds that pay high dividends and interest and moderate growth?

11. What category of mutual fund invests in common stocks of an index? e.g. investing in a mutual fund that is comprised of the companies that make up the Standard and Poors 500 index.

12. What category of mutual fund invests in the common stock of companies in the same industry or sector such as technologies?

13. What category of mutual fund invests in short term corporate obligations (commercial paper), and governmental securities (Treasury Bills, Treasury Notes, and Treasury Bonds)?

Solution Preview

Category of Mutual Funds

1. What category of mutual fund invests in stocks and bonds issued by corporations that have a history of socially responsible actions?

Ans) Socially-responsible funds (or ethical funds) invest only in companies that meet the criteria of certain guidelines or beliefs. Most socially responsible funds don't invest in industries such as tobacco, alcoholic beverages, weapons or nuclear power. The idea is to get a competitive performance while still maintaining a healthy conscience.

2. What category of mutual fund invests in risk oriented common stocks of new companies that promise large returns?

Ans) Small Cap funds. They primarily invests in emerging companies, thought to have potential for future growth and profit. Small caps are generally considered ...

Solution Summary

Solution clearly explains the different categories of Mutual Funds by answering some questions based on risk bearing levels.

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