When the fund's objective is minimal to no income, it is considered an aggressive growth fund. Aggressive growth funds are classified as very high risk and should be considered as an investment for longer than a ten-year period. Balanced Funds contain a mixture of stocks and bonds. This type of fund is a good beginning investment because it diversifies the portfolio with both stocks and bonds. These funds combine objectives of conserving principal, paying current income, and promoting long-term growth of capital.
International funds are subject to currency risk or gain as well as a higher expense ratio.
Sector funds specialize in certain markets, such as health care, technology, or precious metals. Asset-Allocation funds, a newer type of mutual fund, are a blend of stocks, bonds, and money market funds directed to the investor's risk tolerance. Fund of Funds, another new type of mutual fund, is a combination of funds. There may be a stock fund, a bond fund or a money fund combined to provide diversification. Be cautious because there are fees for the separate funds plus fees for the actual fund you are purchasing.