A Growth Fund
A growth fund typically invests in growth stocks -- companies that tend to grow faster than the overall economy. Growth stocks usually show returns, or the promise of returns, which in turn causes the price of the stock to rise. Earnings is one of the main reasons that stock prices rise or fall. Earnings are calculated by taking the companies' revenues and subtracting the overall expenses incurred. Growth stocks either have high earnings or potential for high earnings and usually thrive during a bull market (a fast-paced rallying market).

Value Funds
Value Funds usually invest in inexpensive stocks or stocks that are not favorable with the analysts. Value Fund stocks can also be stocks that are not yet recognized by the market, but have the potential of increasing to a higher price. These stocks can be a good value to the managers of a Value Fund, because they are bought at a bargain price. It is important to note that not all stocks that have lost their value are valuable. Some stocks may not have a promise of future revenue growth. However, some stocks may have fallen out of favor because of a bad record reporting quarter, but still show promise of recuperating in the future. Value Funds do not usually experience as much volatility as other stocks during slow economical times, unlike some other classes of Funds.

What are Bond Funds?
Bond Funds are mutual funds that invest in bonds, instead of stocks. Investing in bonds is less risky than investing in stocks. Bonds are basically like IOUs. What you are doing is lending your money to a bond issuer, who promises to pay you back on your loan, with interest. There are municipal bonds (local government), federal government, federal agencies, and corporate bonds. Bonds have a rating based on the issuer's ability to pay you back. Investment grade bonds have the highest rating, while the lower ratings are called high yield bonds, or junk bonds. Junk bonds usually pay a higher yield, because there is more risk in lending to an issuer that has a bad rating.

There are generally two ways to make money with bonds; a) you can sell them for more than you purchased them and, b) you can receive income from interest payments. It is important to note that bond prices are affected by the interest rates. When interest rates go up, most bond prices go down and when the interest rates goes down, most bond prices go up. Bond Funds have different maturities; the longer the time to maturity, the greater the risk and usually the greater amount of interest earned. While the shorter the maturity term, the lesser risk and usually lesser amount of interest earned.

What is a Core Fund?
A Core Fund's formula is to minimize risk by taking on a investment strategy of diversification. The Core Fund Manager will use a balanced, or a blended strategy, when investing. Balance Funds include both stocks and bonds, while a Blend Fund includes value and growth stocks. This type of investing strategy can give you an edge when one particular market is lagging or not performing as well as expected. Core Funds help to minimize risk while riding the see-saw of the market. If you are looking for diversity and to minimize your risk, a Core Fund could be right for you.

What Are Money Market Funds?
Money Market Funds are typically very low risk. These funds invest in CDs (certificates of deposit) and/or commercial paper, that pay the market interest rate.  Some investors use money market funds and money market accounts to funnel money into other funds and investments rather than using a typical savings account. Money Market Funds pay low interest rates, but tend to be safe investments that allow you, as an investor, to stay fairly liquid. This is a great place to put emergency cash, or cash that you can get to fairly quickly.