Management fees are usually extremely low. Bonds provide a safety cushion during volatile periods, dividends and income provide extra capital appreciation, in addition to appreciation made from stock appreciation. Income Funds that invest in bonds. Money is made from bond income, and also from bonds which increase in value. Capital Preservation Money market mutual funds preserve initial investment.
Interest rates vary, but are usually much higher than in a savings or money market account.
Mutual Fund Investment Guide Print this sheet to use as an aid in selecting the appropriate mutual fund investment strategy that is best for you. In the short term, stocks are volatile. The amount of volatility, if any, depends on the nature of the stock. Stock issued by large and established companies are less volatile, steady growers. Stocks of new and smaller companies tend to have more volatility but greater growth potential over the short run.