Mutual Funds Basics from Aim Mutual Funds

Aim mutual funds are one of the services provided by Aim Investments. As a company, Aim provides investment management in a global scale. Aim’s growth also moves forward to the dream of becoming the best investment management firm in the world.

Here is the list of mutual funds being offered by Aim:

Global and International Funds are types of Aim mutual funds that invest on companies in two different natures. The Global funds invest in both the United States and International companies. The International funds on the other hand invest on companies beyond the borders of the United States. If stocks are invested in foreign shores, expect to experience volatile activities compared to domestic investment.

Bond Mutual Funds are another type of Aim mutual funds that solely invest on bonds such as debt or IOUs that are issued either by governments or companies. The investment works by purchasing bonds to the issuer, somewhat lending your money. It is returned with regular interest up to the time that the money is completely returned. The interest paid, or some calls it coupon usually has a set percentage that corresponds to the amount invested. Thus, the bond mutual funds are sometimes referred to as fixed-income investments.

Sector Funds invest on one sector of the economy be it in Internet, banking, and technology among other things. These funds invest in such a way that the portfolios are diversified to achieve the maximum investment return.

Stock Funds or Equity Funds are another type of Aim mutual funds that invest in corporations with a goal for becoming part owner through the stocks bought. The income here is based on the stock price appreciation. There are 3 basic stock funds sizes: large, medium, and small. The stocks funds are usually invested on of the 3 sizes that are in turn categorized as small-cap funds, mid-cap, or large-cap. The Aim mutual funds use value, growth or blend (combination of value and growth) for these particular funds.

Balanced Funds combine some bonds and some stocks. Normally, Aim mutual funds of this kind are composed of ½ stocks and ½ bonds and cash. This composition is important to balance the risk against the reward.

Index Funds invest on stock market and involve full participation on the activity of the fund.

These Aim mutual funds are offered with several particular funds that will fit to the need of every investor.