ABSTRACT
This chapter examines the various mutual fund options that are available in three broad investment categories, such as cash, bonds, and stock. Many mutual fund companies offer tax-free money market funds that are targeted primarily to people living in high income tax states, like New York and California. The objectives of bond funds include criteria regarding the types of bonds that can be held by the fund. There is a wide variety of bond funds available, such as US government bond funds, corporate bond funds, tax-exempt bond funds and non-US bond funds. The types of stock funds include equity income funds and non-US stock funds. In addition to basic mutual funds that hold assets within the cash, bonds, and stock categories, there are funds available that are more specialized or that hold assets in more than one category, such as index funds, balanced funds and specialty funds.
