Three Common Types of Mutual Funds

Aegis Capital Corp pic

Aegis Capital Corp
Image: aegiscapcorp.com

A New York City-based broker-dealer founded in 1984, Aegis Capital Corp. offers a comprehensive selection of services for individual and institutional investors. Retail services provided by Aegis Capital Corp. include mutual funds, the structures of which vary based on the needs of the investor.

Money market funds: Money market funds typically invest in low-risk assets such as treasury bills, government bonds, and certificates of deposit. Although the risk profile of money market funds is low, the potential returns are also relatively low.

Equity funds: As the name suggests, equity funds invest in stocks. Unlike money market funds, which provide consistent returns with low risk, equity funds involve fast growth and higher risk. Investors can choose from a variety of equity funds, including value stocks, growth stocks, income funds, and more.

Index funds: Index funds peg their value to the performance of indices such as the S&P/TSX Composite Index. Because index funds require fewer investment decisions from the fund manager, costs associated with index funds are relatively low.

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