INVESTMENT MODEL AND TYPES

The fund is usually invested in various equities, bonds and debentures, depending on the objective and the terms of scheme floated by the company offering the mutual fund. Some funds invest in gold or other assets too.

An average or a novice investor is often confused about the various kinds of mutual funds and is generally not sure where to invest. However, if one makes the effort to read a bit more and talk to a few advisors, they will be able to differentiate between various types of mutual funds. Going by what market insiders say, mutual fund investments are one of the best ways to supplement your retirement savings, especially if you are at the threshold of around 30 years of age. Let us take a look at the various types of funds floating in the market.

Aggressive Growth (Cumulative Returns)

Aggressive growth investment implies that you are buying into stocks that have a chance for dramatic growth and may gain value. It is a great option for investors who can invest for the long term. It is recommended that you do not choose this option if you are looking to conserve capital; you may go ahead if you can afford to potentially lose the value of your investment.

Aggressive growth generally results in high returns. The fund portfolio is a mix of large, medium and small companies. The fund portfolio chooses to invest in stable, well-established, blue-chip