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What are some of the examples of investment companies? Differentiate between specialized mutual funds, large cap...

What are some of the examples of investment companies? Differentiate between specialized mutual funds, large cap funds, value funds, growth funds, and a family of funds.

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The investment companies make money by buying and selling shares, bonds, property and other funds and assets.These companies also offer several mutual fund schemes which the common investor can invest in, instead of directly investing in the stock market.

The examples of investment companies are Goldman Sachs, JP Morgan, Bank of America, Citigroup.

Specialized mutual funds: in these mutual funds,there exists very less diversification . These funds carry higher risk but also carry a higher reward.

Large cap funds : large cap funds are funds that invest a majority of their funds in companies which have a large market capitalization. These funds are less risky due and a very good deal for people who are risk averse investors.

Value funds: are funds, which invest in stocks which fundamentally undervalued investments. These funds pay a little dividend.

Growth funds : these funds invest in companies which are emerging and have high growth prospects. These stocks pay no dividend.

Family of funds : are a group of mutual funds which are offered by one investment company. An investor can switch from one mutual fund scheme to the another without incurring fees for switching if they belong to the same family.

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