answersLogoWhite

0

It's actually "investment grade" funds versus "Class D" funds. But anyway... Both are kinda like mutual funds--a lot of securities grouped together and sold in shares. Unlike mutual funds, which are comprised of stocks, bond funds are comprised of bonds. The difference is the quality of the bonds in the fund. Investment-grade funds hold nice, safe, well-regarded, boring securities that just sit there, pay interest and don't worry the fund manager too much. Class D fund deal in Class D debentures--D stands for Default. These things are super speculative, super risky and pay large returns if they succeed. You can play in these and make a lot of money quick; you can also play in these and lose your shirt quick. If you're going to invest in Class D funds, you need another shirt--some stable mutual funds, Treasuries, investment-grade bond funds, SOMETHING that you won't lose everything you have in. Also be ready to get out of the Class D fund at a moment's notice.

User Avatar

Wiki User

16y ago

What else can I help you with?

Related Questions

What is the difference between investor and creditor?

A person who invests money in order to make a profit is an investor. A creditor is lender of the funds, to whom someone owes a loan.


Explain the difference between an investor and a creditor of a business?

A person who invests money in order to make a profit is an investor. A creditor is lender of the funds, to whom someone owes a loan.


Difference between bonds shares and mutual funds?

The difference between bonds shares and mutual funds is in their definition. Bond shares refers to the individual shares that an investor owns in a company while mutual fund is the collection of all the stocks and shares in a company.


What is the difference between an individual investor and a institutional investor?

Individual Investor is a person who directly invest in companies shares. whether Institutional investor generally invest for other people.like pension funds,Investment companies,Life Insurance companies so forth all of whom manage large portfolios of securities.


How many mutual funds are there?

There are about 7000 mutual funds (specifically "open end mutual funds") in the U.S. today. These fund have a variety of share classes, such as "Class A" or "Investor Class", which expands the total number of share offerings out to about 25,000. Source: NewRiver, Inc.


What is the difference between an individual and an institutional investors?

Individual Investor is a person who directly invest in companies shares. whether Institutional investor generally invest for other people.like pension funds,Investment companies,Life Insurance companies so forth all of whom manage large portfolios of securities.


When an investor borrows money and invests the borrowed funds along with his or her own funds in securities?

buying on a margin


What are the key differences between owners funds and borrowed fund?

The difference between owner's funds and borrowed funds is just that. One is owned, and the other must be paid back.


Difference between bonds and debentures?

A debunture is an unsecured loan certificate issued by a company, backed by general credit rather than by specified assets. A bond is a debt investment in which an investor loans money to an entity that borrows the funds at a fixed interest rate.


What is the difference between an accredited investor and a qualified purchaser?

An accredited investor is an individual or entity that meets certain income or net worth requirements set by the Securities and Exchange Commission (SEC) to participate in certain investment opportunities. A qualified purchaser, on the other hand, is an individual or entity that meets higher financial thresholds set by the Investment Company Act of 1940 to invest in certain types of private investment funds. In summary, the main difference is in the specific criteria and regulations that define each type of investor.


Define Types and importance of Mutual Fund?

There are many types of MFs * Equity Diversified * Debt Funds * Fund of Funds * Hedge funds * Contra funds * Index funds * etc Mutual funds are instruments of investment for the investor who does not have the time or the expertise to trade in stocks. An expert financial investor would pool in money from such investors and trade stocks on their behalf and share the profit or loss with them.


What is the top money market fund according to The Skilled Investor website?

There are two top money market funds according to The Skilled Investor website. The names of these two funds are The Vanguard Fund and The Fidelity Fund.