Chapter 18: Mutual Funds: Types and Features

In this section

• 18.1 Types of Mutual Funds
  • 18.1.1 Equity Funds
    An in-depth exploration of equity mutual funds, their subcategories, and their role in investment portfolios.
  • 18.1.2 Fixed-Income Funds
    This section provides a comprehensive look at Fixed-Income Funds, types of mutual funds that invest primarily in fixed-income securities to generate consistent returns through interest income and potential capital appreciation.
  • 18.1.3 Balanced Funds
    An in-depth exploration of balanced funds, their mixed-asset approach and asset allocation strategies within the scope of mutual funds.
  • 18.1.4 Money Market Funds
    A comprehensive exploration of Money Market Funds, highlighting their stability, liquidity, and risk considerations within the mutual fund landscape.
  • 18.1.5 Specialty Funds
    An in-depth exploration of specialty mutual funds, their types, characteristics, advantages, and risks.
• 18.2 Fund Management Styles
  • 18.2.1 Active Management
    An explorative guide to understanding the active management style of mutual funds, including strategy, research, and analysis.
  • 18.2.2 Passive Management
    Exploring the characteristics and benefits of passive management in mutual funds.
  • 18.2.3 Growth vs. Value Strategies
    Exploration of growth and value investment strategies, focusing on fund management styles within mutual funds.
• 18.3 Redemption of Mutual Fund Units or Shares
  • 18.3.1 Redemption Process
    An in-depth overview of the mutual fund redemption process, detailing the steps involved, typical timelines, and the impact on a fund's net asset value (NAV).
  • 18.3.2 Fees and Charges
    This section provides an in-depth examination of the fees and charges associated with the redemption of mutual fund units or shares, focusing on redemption fees and deferred sales charges.
• 18.4 Measuring Mutual Fund Performance
  • 18.4.1 Performance Metrics
    Understanding the metrics used to evaluate mutual fund performance, including total returns and benchmark comparisons.
  • 18.4.2 Risk-Adjusted Performance
    An in-depth exploration of the tools and metrics used to evaluate mutual fund performance while adjusting for varying levels of risk, including the Sharpe Ratio, Alpha, standard deviation, and beta.
  • 18.4.3 Performance Reporting
    An exploration of the practices and importance of performance reporting in mutual funds, focusing on regular updates, transparency, and thorough documentation for investors.