Moderate growth funds take their chances with more established, growing companies. If they do poorly the value goes down. Equity Income Funds invest in stocks that pay regular dividends. You receive a quarterly check of your share of all the dividends paid to the fund. Bond Funds invest in bonds, which pay steady interest.
Some mutual funds focus on a specific portion of the economy as a way to achieve their goals.
International Funds invest in specific foreign regions or countries, such as companies based in Asia, or those doing business in Mexico. Precious Metal Funds invest in companies that mine and sell gold, silver or platinum. As a general rule, growth funds seem best-suited for college students. And if that s too scary, there are plenty of less-radical mutual funds that still tend to do much better than your bank account. Unless you need every dime of your money to spend for college next year, you can probably afford to take moderate risks with your money.