Attention: Due to a bug in Google Chrome, this page may not function correctly. Click here to learn more. 5. Types of mutual funds Aa Aa What Are Some Different Types of Mutual Funds? Mutual funds are categorized based on certain criteria such as investment policies, investment objective and the risk and return profile of the investment assets. In the following table, select the type of fund that matches each of the given descriptions. Description of Fund Type Aimed at capital appreciation, best for long-term investors willing to accept some risk Fund Type Value fund Balanced fund Targets stocks that are undiscovered and thus priced below their true value Aimed at supporting a moral, ethical, or environmental issue Growth fund Includes stocks and bond holdings (roughly 30-40% in bonds) to generate both current income and capital gains One of the most aspects of investing is diversification and deciding on which assets the investments will be allocated. To address this need of asset allocation, the mutual fund industry also offers asset allocation funds. Which of the following feature about asset allocation funds is true? The managers of these funds establish a desired allocation mix, and as market conditions change over time, the asset allocation mix also changes. The managers of these funds establish a desired allocation mix but never change the mix based on the market conditions.