| Category | Description |
|---|---|
| Asset Class | Equity Funds: Invest primarily in stocks or equities. |
| Fixed-Income Funds: Invest primarily in bonds or other fixed-income securities. | |
| Money Market Funds: Invest in short-term, low-risk securities like government bonds and commercial paper. | |
| Hybrid or Balanced Funds: Invest in a mix of stocks and bonds to achieve a balance of growth and income. | |
| Investment Objective | Growth Funds: Aim to provide capital appreciation by investing in stocks with growth potential. |
| Value Funds: Seek undervalued stocks with the potential for future price appreciation. | |
| Income Funds: Focus on generating regular income through dividends and interest payments. | |
| Index Funds: Aim to replicate the performance of a specific market index. | |
| Sector Funds: Concentrate on a specific industry or sector of the economy (e.g., technology, healthcare). | |
| Geographic Focus | Domestic Funds: Invest in securities of companies based in the fund's home country. |
| International Funds: Invest in securities of companies based in foreign countries. | |
| Global Funds: Invest in a combination of domestic and international securities. | |
| Market Capitalization | Large-Cap Funds: Invest in large, well-established companies. |
| Mid-Cap Funds: Focus on mid-sized companies. | |
| Small-Cap Funds: Concentrate on small, emerging companies. | |
| Risk Profile | Aggressive or Growth Funds: Have a higher risk and potential for higher returns. |
| Conservative or Income Funds: Focus on lower-risk assets with potential for stable income. | |
| Target Date or Lifecycle Funds | These funds adjust their asset allocation based on the investor's target retirement date. They become more conservative as the target date approaches. |
| Index vs. Actively Managed Funds | Index Funds: Aim to replicate the performance of a specific market index and generally have lower expense ratios. |
| Actively Managed Funds: Have fund managers making investment decisions to try to outperform the market. | |
| Specialty Funds | Focus on specific themes, strategies, or investment niches, such as environmental sustainability, real estate, or commodities. |
| Sector Funds | Concentrate investments within a specific sector of the economy, such as technology, healthcare, or energy. |
| Ethical or Socially Responsible Funds | Invest in companies that meet certain ethical or social criteria. |
| Bond Funds by Duration | Short-Term Bond Funds: Invest in bonds with shorter maturities. |
| Intermediate-Term Bond Funds: Focus on bonds with maturities between short and long term. | |
| Long-Term Bond Funds: Invest in bonds with longer maturities. | |
| Tax-Efficient Funds | Aim to minimize tax implications for investors, often by using strategies to reduce capital gains distributions. |