FundsInvesting can be done through various investment funds. There are 4 types of investment funds: mutual funds, exchange traded funds, closed end funds, and hedge funds. You can buy these funds from your brokerages. Whether it is for your retirement account, 401k, 403b, 529 college saving accounts; you need to know these funds in details.
Investment fund is a supply of capital belonging to numerous investors to buy securities. The investors will retain ownership and control of their own shares.
Mutual FundsMutual fund is an investment vehicle that is made up of a pool of capitals or funds collected from investors to invest in securities such as bonds, stocks, money markets, etc. There are several of mutual funds by fund family: stock fund, bond fund, balanced fund, and target date fund.
Top mutual funds are:
- Vanguard 500 Index Fund
- Vanguard Total Stock Market Index Fund
- PIMCO Total Return Fund
- American Funds Europacific Growth Fund
Exchange Traded FundsExchange traded funds (ETFs) are similar like mutual funds. These investment funds are traded on stock exchanges like stocks. Most ETFs are index funds. They also typically has low expense fee.
Top exchange traded funds:
- SPDR S&P 500 ETF (SPY)
- iShares Core S&P 500 ETF (IVV)
- iShares MSCI EAFE ETF (EFA)
- Vanguard FTSE Emerging Markets ETF (VWO)
- PowerShares QQQ (QQQ)
Closed End FundsClosed end funds are similar to ETFs. These CEFs are collective investment model based on a fixed number of shares which are not redeemable from the fund. The fund is traded at market exchange such as NYSE, NASDAQ, etc.
Top closed end funds are:
- Kayne Anderson MLP (KYN)
- Central Fund of Canada (CEF)
- PIMCO Dynamic Credit Income Fund (PCI)
- EV Tax-Managed Global Fund (EXG)
- DNP Select Income Fund (DNP)
- Top Performing Income & Preferred Stocks Closed End Funds 2015
- Top Performing Emerging Markets Stock Closed End Funds 2015
- Best High Yield Bond Closed End Funds 2015
Hedge FundsHedge funds use different investment strategies to enhance their returns. A hedge fund is an investment vehicle that pools capital from various investors and invests in securities such as stocks.
Popular hedge funds:
- Bridgewater Pure Alpha - Ray Dalio
- Quantum Endowment Fund – George Soros
- Paulson & Co. – John Paulson
- Baupost – Seth Klarman
- Brevan Howard – Alan Howard
- Appaloosa – David Tepper
- Stock mutual funds
- U.S. Stock Fund
- International Stock Fund
- Bond mutual funds
- Municipal bond fund
- Taxable bond fund
- Balanced funds
- Commodities Fund