9 Most Popular Types of Mutual Funds

There are so many different types of mutual funds to choose from. Find out which mutual fund types are best suited to your personal investing style.

There are many different types of mutual funds you can choose from. Some of the most popular are:

• Equity Mutual Funds
• Fixed Income Mutual Funds
• Money Market Mutual Funds
• No Load Mutual Funds
• Growth Stock Mutual Funds
• Tax Saving Mutual Funds
• Index Mutual Funds
• Gold Mutual Funds
• Socially Responsible Mutual Funds

Read on to learn the ins and outs of each of the above types of mutual funds.

Equity Mutual Funds

Most people who invest in mutual funds invest in equity funds. In a lot of ways, these emulate the principle upon which a lot of stock-market moves are made: long-term investment resulting in capital gain

Fixed Income Mutual Funds

This type of mutual fund relies mainly on bonds — not a stock in a company but a kind of loan that the company (or a municipality, or a state, or the federal government) then pays back with interest. These are going to pay out a lot less than a successful equity type mutual fund, but the risks are controllable by bond type.

Money Market Mutual Funds

If you’re looking for a place to put your money that’s better than a savings account but very much risk-free, this type of mutual funds typically can do the trick. Most of the time you’ll find money market portfolios full of Treasury bills.

No Load Mutual Funds

A no load mutual fund is a fund in which shares are sold without a commission. The reason for this is that the shares are distributed directly by the investment company, instead of going through a secondary party.

Growth Stock Mutual Funds

A growth stock mutual fund is essentially a diversified portfolio of stocks that has, as it’s primary goal, capital appreciation. It consists mainly of companies with above-average growth in earnings. Instead of paying dividends, these companies will reinvest their earnings into expansion, acquisitions, research and development, etc.

Tax Saving Mutual Funds

A tax-free savings account can hold a variety of investment instruments – one of which is a mutual fund. The fund can grow tax-free for life, meaning that interest, dividends and capital gains earned are never taxed – even when withdrawn!

Index Mutual Funds

An index mutual fund has a portfolio constructed to match the components of a market index (i.e.: S&P 500). This kind of mutual fund is said to provide broad market exposure, low operating expenses and low portfolio turnover.

Gold Mutual Funds

A gold mutual funs invests primarily in gold-producing companies or gold bullion. The price of shares within a gold fund correlates closely to the spot price of gold itself (assuming the fund holds the majority of its assets either in bullion or in the stocks/bonds of gold miners).

Socially Responsible Mutual Funds

Socially responsible mutual funds hold securities in companies that adhere to social, moral, religious or environmental beliefs. To ensure the stocks chosen have values that coincide with the fund’s beliefs, companies undergo a careful screening process.

---

The Best U.S. Brokerages as of June 30, 2025

Ranking of Top U.S. Stock Brokerages Based on Fees, Features, and Sign-Up Bonuses

We are experienced users of dozens of stock trading platforms. We stay up to date on these platforms' service offerings, subscription fees, trade commissions, and welcome bonuses. The brokerages listed below are for U.S.-based investors, and are ranked in order of overall value received after taking advantage of their sign-up and/or referral offers.

Rank	Brokerage	Fees	Features	Sign-Up Bonus	Read Our Review
1.	Robinhood	$0	✅ U.S. stocks, ETFs, options, and cryptos ✅ Now 23 million users ✅ Cash mgt account and credit card	Free stock up to $200 with new account, plus up to $1,500 more in free stock from referrals	Robinhood Review
2.	Moomoo	$0	✅ Free Level 2 Nasdaq quotes ✅ Access to U.S. and Hong Kong markets ✅ Educational tools	60 free stocks with $5k deposit; or 25 free stocks with $2k deposit	Moomoo Review
3.	Interactive Brokers	$0	✅ Access 150+ global stock exchanges ✅ IBKR Lite & Pro tiers for all ✅ SmartRouting™ and deep analytics	Refer a Friend and Get $200	Interactive Brokers Review
4.	Robinhood Gold	$5	✅ 4% APY on cash ✅ 3% IRA match ✅ Level II data ✅ No interest on first $1,000 of margin	Save with Annual Fee	Robinhood Gold Review
5.	M1 Finance	$3 monthly 10k in assets	✅ Automated investing “Pies” ✅ Banking & low-interest loans ✅ No trading fees with scheduled trades	$75-$500 Tiered Sign-up bonus	M1 Finance Review
6.	Webull	$0	✅ Extended-hours trading ✅ Great charts and screeners ✅ Commission-free options trading	$10 and a 30-day complimentary subscription to Webull premium; $200-$30,0000 Tiered Sign up bonus	Webull Review
7.	Public	$0	✅ Fractional shares ✅ No payment for order flow model ✅ “Alpha” tool with earnings calls	$100-$10,000 Tiered Cash Account Transfer Bonus	Public Review
8.	Composer	$32 a month	✅ Invest in automated strategies ✅ Build custom strategies easily ✅ IRAs	$49 per successful referral with no limit on the number of referrals	Composer Review
9.	Stash	Growth $3; + $9 Month	✅ Stock-Back® debit card rewards in fractional shares ✅ Auto-invest and budgeting tools ✅ Curated theme portfolios	$5 when you invest $5	Stash Review
10.	Acorns	Bronze $3; Silver $6; Gold $12 a month	✅ Automated investing portfolios ✅ ESG curated portfolios ✅ Acorns Early Invest for Kids' Accounts	Get a $20 bonus when you start saving & investing	Acorns Review
11.	Etoro	$0	✅ CopyTrading™ to follow top traders ✅ Trade U.S. stocks, ETFs, and crypto ✅ Trades with themed portfolios	$10 Crypto Sign-Up Bonus	Etoro Review
12.	Cash App	$0	✅ U.S. stocks and bitcoin; $1 minimum ✅ Peer-to-peer payments ✅ Beginner-friendly financial ecosystem	Up to $200 in free overdraft coverage and earn 4% on cash	Cash App Review
Fees, features, sign-up bonuses, and referral bonuses are accurate as of May 31, 2025. All information listed above is subject to change.