Mutual funds are the types of investments that combine your finances with other investors to buy shares of a group of securities including bonds and stocks, which is known as a portfolio that might be problematic for one person to create and maintain. A portfolio manager handles mutual funds. Whether you are a novice or an expert money manager, investing in such kinds of financial products can be a lucrative step for any investor. Some of the most useful features of a mutual fund are as follows:

• Investing in mutual funds is an easy process. All you have to know is the investment objective, level of risk, duration of the investment, and the kind of mutual fund you are going to use.

Types of mutual funds
If you are planning to invest in a mutual fund soon, then you should be aware of its common types, so that you could make a conscious and best choice.

• Money market funds – Usually, one of the most reliable types of investment, this mutual fund invests your finances in short-term income securities including treasury bills, commercial paper, certificates of deposit, government bonds, and banker’s acceptances. However, relatively they offer a lesser potential return on investment.
• Income Funds – The objective of this type of mutual fund is to offer an income on a regular basis by investing in first-rate corporate and government bonds.
• Equity funds – These mutual funds invest your money in stocks, and their goal is to develop faster as compared to income or money market funds. However, there is a higher level of risk involved. There are different types of equity funds that you can pick such as value stocks, growth stocks, income fund (stocks which reimburse huge dividends, mid-cap stocks, small-cap stocks, large-cap stocks, etc.
• Balanced funds – The balanced funds invest in a blend of income and equities securities, and attempts to accomplish good returns and evade the risk of losing money. Typically, they use a formula to divide the finances between the different forms of investments. They are less riskier than equity funds but entail a higher gamble than income funds.
• Specialty funds – These kinds of mutual funds concentrate on a particular area of financing like commodities, real estate, or socially responsible investing. For instance, a socially responsible investment will only get involved in organizations that are associated with human rights or environmental initiatives. At the same time, they might avoid businesses which contribute to activities such as gambling, weapons, smoking, or alcohol.