Money market funds
Money market funds Funds that invest in short-term money market instruments (usually less than one year in maturity), such as government securities, term notes, bank deposits, and other assets denominated in different currencies.
Equity funds are funds that invest primarily in stocks (usually not less than 80% of the fund's assets), with the goal of capital appreciation. Some of these funds invest in local stocks or international stocks, while others invest in blue chip stocks or shares of small companies.
Bond funds Funds that invest primarily in bonds or other fixed income securities (usually not less than 80%). Issuers of these bonds and securities include governments, states, corporations or other issuers.
Warrant or derivative funds
More than 70% of the assets of warrant funds are usually invested in warrants or related financial instruments, and such funds can have a high leverage ratio. Derivatives funds invest in leveraged financial instruments such as futures, forward contracts and options for the purpose of capital appreciation.
Convertible Bond Fund
Convertible bond funds mainly invest in convertible bonds and preferred stocks, usually not less than 70%. A convertible bond is a financial instrument that gives the bondholder the right to convert their holdings into shares at a pre-specified future date.
Asset allocation funds
Asset allocation fund is a balanced investment portfolio, the purpose of which is to strive for both capital appreciation and fixed income funds. These funds invest in global equities, fixed income securities and money market instruments, usually with no more than a certain percentage invested in a given asset class.
Fund of funds
A fund of funds buys other funds and does not invest directly in stocks, bonds or other securities.