DCSIMG
Menu
 

Trust Services

Types of Mutual Funds

With over 10,000 mutual funds in North America, there is a fund that fits most any investor's style.

It’s important to understand that each mutual fund has different risks and rewards. In general, the higher the potential returns, the higher the risk of loss. Though some funds are less risky than others, all funds have some level of risk. Even by diversifying among many investments it's never possible to diversify away all risk. This is a fact for all investments, including mutual funds.

Each fund has a predetermined investment objective that can be tailored in terms of assets, regions, investment strategies and any combination in between. Basically, there are three varieties of mutual funds:

1) Equity funds (stocks)
2) Fixed-income funds (bonds)
3) Money market funds

All mutual funds are variations of these three asset classes. For example, equity funds that invest in fast-growing companies are known as growth funds, while an equity fund that invests in companies in the same sector or region is known as a specialty fund.

« Return to Mutual Fund Basics

 

First Commonwealth Advisors is a registered trademark of First Commonwealth Bank for investment management, trust and fiduciary services and for investment advisory services provided by First Commonwealth Financial Advisors, a registered investment advisory affiliate. Certain insurance products are offered through First Commonwealth Insurance Agency, a licensed insurance affiliate. Securities, insurance products and certain other advisory services are offered through Essex National Securities LLC, member FINRA/SIPC and an SEC registered investment advisor. Essex is not affiliated with First Commonwealth Bank.