Tell me something about mutual fund categorys

Question

Accepted Answer

Mutual fund categories classify funds based on investment objectives, strategies, and underlying assets.

Mutual fund categories help investors choose funds that align with their financial goals and risk tolerance.
Common mutual fund categories include equity funds, bond funds, money market funds, and balanced funds.
Equity funds invest primarily in stocks, bond funds in fixed-income securities, money market funds in short-term debt instruments, and balanced funds in a mix of stocks and bonds.
Other categories include sector funds, index funds, and target-date funds.
Investors should consider their investment goals, time horizon, and risk tolerance when selecting mutual fund categories.

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