With as many types of mutual funds as there are objectives, fund managers, and investment companies to support them, any investor can find a mutual fund that meets their personal goals.
In addition to the objectives and goals of any mutual fund, mutual funds come in a wide variety of types. At a fundamental level, there are three asset classes invested in by mutual fund managers:

• Equity or stocks
• Fixed-income securities or bonds
• Money markets

Most mutual funds hold a combination of these three assets. Types of mutual funds include (but are not limited to):

• Balanced funds, where the objective is to provide a mix of safe investments with income-generating ones that may be considered more risky. A typical balanced fund may have 60% invested in stocks and 40% in fixed-income securities, such as bonds or CDs.
• Equity funds, where the objective is long-term capital growth through ownership of a variety of companies characterized by their low price-earnings ratio and high dividend yields.
• Income funds, where the objective is to generate and provide income at a steady pace to the investors while maintaining the principle. A typical income fund will invest primarily in government-backed securities and bonds issued by large, stable corporations.
• Global or International funds, where the objective is to invest in the global economy at large and take advantage of economies that may be outperforming the investor's home country.

In addition, other types of mutual funds can be purchased, such as specialty funds, index funds, and more.
An individual investor's share of the mutual fund's return may be taxed by capital gains, depending on their tax status, so it is important for investors to work with a financial advisor who can help determine when the funds invested can be safely redeemed. With the wide variety of options, most investors can become easily overwhelmed by the sheer numbers of mutual fund choices. For this reason, we recommend you consult with your Obsidian Financial Group advisor to determine which mutual fund (or funds!) meets your individual investment strategy needs.