Money market funds.
Money market funds are fixed income mutual funds that invest in debt securities characterized by short maturities and minimal credit risk. Money market mutual funds are among the lowest-volatility investments. Income generated by a money market fund is either taxable or tax-exempt, depending on the types of securities the fund invests in.
Fixed income funds
As the name suggests these funds provide investors with steady income. They invest in a combination of government securities, certificates of deposits, corporate bonds and money market instruments. They are managed by expert who actively try to manage the portfolio based upon the interest-rate movements, while keeping the portfolio credit worthy.
It is a type of fund that primarily makes investments in stocks, it gives the investor an opportunity to procure ownership in a business. It feeds the desire to invest in booming startups or already existing businesses.
These funds are often called hybrid funds. These funds keep a balance between regular growth and income. Such schemes are made to attract investors who seek safety, income and modest capital appreciation. These schemes generally invest in both income and equity funds.
These funds are passively managed funds and as the name suggests, these funds invest in an index. Such funds purchase all the stocks in the same proportion as in a particular index. An index mutual fund provides market exposure and low operating expenses. These funds follow specific standards (e.g. efficient tax management or reducing tracking errors) that stay in place irrespective of the state of the market. (explain better & more simply)
This is the type of fund that primarily invests within the securities of a particular industry, sector, or region of the world. Thus, specialty funds are commonly referred to as sector funds. The most common sectors include: energy, financial services, health care, precious metals, real estate, technology, and utilities.
As the name suggests, it is a fund that invests in other mutual funds to offer huge diversity. These funds do not directly invest in stocks, bonds or securities but instead invests in a collective investment scheme. However, the fees of such investments are little higher, as it includes the fees of underlying funds. (make this more relevant and explain more simplistically)