A floating rate fund is a fund that invests in financial instruments with variable or floating interest rates. A floating rate fund invests in bonds and debt instruments, the interest payments on which fluctuate depending on the level of the base interest rate.
Variable rate funds may include corporate bonds as well as loans from banks to companies. These loans are sometimes repackaged and included in a fund for investors. However, loans may carry the risk of default.
Although floating funds offer returns in the face of rising rates, since they fluctuate with rising rates, investors should weigh the risks associated with investing in funds and research funds.
Go-go fund - a mutual fund with an investment strategy focused on growth stocks and other high-risk securities.
These funds were at their peak in the 1960s, attracting investors with the promise of unusually high market returns.
A Growth and Income Fund is a mutual fund or ETF strategy that seeks to generate a total return for investors, including capital gains and current income.
Lifecycle funds are asset allocation funds in which the share of each asset class automatically adjusts to reduce risk as the desired retirement date approaches.
Market neutral refers to a type of investment strategy used by investment managers who seek to profit from both rising and falling prices in financial markets.
Market timing is the act of moving investment money into or out of the financial market - or switching funds between asset classes - based on predictive methods.