These funds primarily invest in low-rated corporate bonds, also known as junk bonds. Money market funds are the safest funds for preserving principal and pay income based on current interest rates. Many of these funds offer check writing privileges. Back to Top Knowing what you want You can also buy mutual funds to serve particular investment purposes. Index fund fees tend to be lower than those on other funds because there's little buying and selling.
Green funds attract investors interested in socially responsible investing.
For example, green funds may avoid tobacco companies, or seek out companies with strong environmental records. You have to look for green funds, though, as they aren't tracked as a separate category. Sector funds focus on a specific industry like technology or health care. The risk level is considered greater because the fund's performance depends on the activity of a single industry, which may enjoy a boom or get stuck in a downturn. All Rights Reserved.