What types of mutual funds are there?

    Published: 06-16-2009
    Views: 9,906
    Financial planner David Marotta describes the basics of a mutual fund including the various types of mutual funds available.

    David John Marotta

    David John Marotta is the President of Marotta Wealth Management, a fee-only financial planning and asset management firm in Charlottesville, Virginia. He is an oft-quoted writer and speaker on financial matters and his weekly financial column can be found at www.eMarotta.com

    Host: What types of mutual funds are there?

    David Morotta: Mutual funds can collect together any type of investments. So, you can have a mutual fund that just invests in bonds. You can have a mutual fund that just invests in healthcare stocks. You can have a mutual fund that tries the balance between bonds and stocks called the balance fund or an asset allocation fund and so any kind of those investments can be collected together. It turns out that there are currently more mutual funds traded than there are stocks on the New York Stock Exchange.

    So, there are more different combinations and permutations of stocks that have been collected into mutual funds and they are actual are stocks themselves.