So you have decided to buy a mutual fund but you are not sure what type of mutual fund to invest in. Well, let's take a look at the different types of mutual funds you have to choose from. The three main categories of mutual funds are: Equity, Bond, and Mixed. Equity funds invest in stocks, bond fund invest in bonds, and mixed funds invest in both stocks and bonds.Many of the funds belong to different categories like large cap, mid cap or small cap. The small caps target on smaller companies and have greater growth potential, whereas large caps have better stability. If you are a beginner, you might want to consider picking a large cap growth fund.As you can probably guess by the name, these types of mutual funds invest into different types of assets such as stocks, bonds and other equities. These funds typically consist of 40% fixed income assets with the other 60% invested in equities. These funds are ideal for those investors who want to diversify their risk by investing into different assets while also getting a return on their investment.

Most funds can fall into three major types - growth funds,income funds and balanced funds, by how aggressive or conservative they are and by investment objective. A mutual fund can also be a loaded fund or no-load fund, and so on.We all incur expenses in our lives from payment of electric, phone and grocery bills to buying a house or car, educating and marriage of children, retirement funds, healthcare funds etc. The kinds of expenses we incur in our daily lives are easy to handle but long term financial responsibilities like your child's higher education and marriage or health care plans when you retire need careful planning.Mutual Fund investment portfolios are continually adjusted under the supervision of a professional manager ( known as the portfolio. Fund manager), who forecasts the future performance of investments appropriate for the fund and chooses those which he or she believes will most closely match the funds stated investment objective.

These investments also incur expenses because the manager has to be paid handling charges. These are basically the management fees. On the other hand there are non-management fees which include a number of other things. Back to the management fees, there are administrative charges, advisory charges and contractual charges that are all payable regardless of the type of investment one has.You can invest money in a mutual fund in a lump sum, like $10,000, and this buys you shares based on the current net asset value or share price. Or, as millions of Americans do, you can invest periodically like in a 401k plan, IRA, or other account. The investment basics from your perspective: You then own a small part of a large investment portfolio of securities and can make money in two basic ways.

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