Are mutual funds equities or fixed income?
This is a difficult question to answer because there are different types of mutual funds. Some mutual funds invest in equities. Other mutual funds invest in bonds and other fixed-income investments. Still other mutual funds invest in both stocks and bonds, which would make them hybrid investments. Ultimately, it depends on the specific mutual fund in question.
Equity vs Fixed Income: The Bottom Line
Both equity and fixed income have a place in a well-diversified investment portfolio. Which one is right for you depends on your individual goals and risk tolerance. If you’re looking for growth potential, equity may be the better option. However, if you’re more concerned with preserving your capital, fixed income may be a better choice. Ultimately, the best way to invest is the way that aligns with your goals and risk tolerance.