Open end funds are popular investments; institutions and individuals have relied on these funds to yield solid returns. Rather than your having to find individual companies, why not let professional money management firms find them for you? Buy open end funds to give you a broad exposure to the stocks in which you want to invest. In addition, they’re less risky.

Open end funds can yield tremendous returns to your portfolio. If you have made your money mostly in stocks and futures, you should consider putting some of that money into open ends funds. You can buy open end funds through the mutual fund company itself. Here are three suggestions for open end funds investing:

1. Focus on equity open end funds for growth.

2. Specialize in income and bond open end funds for current income.

3. Save on taxes by investing in municipal open end funds.

Action Steps
The best contacts and resources to help you get it done

Invest in equity open end funds if you're looking for growth

As an open end funds trader, you'll certainly want to add these types of investment securities to your portfolio. These equity funds account for approximately 50 percent of all investments in the mutual funds industry. These open end funds investments differ as far as their investment objectives. For example, a professional open end funds firm might focus on investing in companies that promise growth.

I recommend: American Funds’ AMCAP Fund focuses on long-term growth. This open end funds firm is known for its stability. T. Rowe Price is also a well-known open end funds brokerage company. The company’s growth fund not only specializes in long-term capital growth, but in seeking dividends from reputable growth companies.

Invest in income and bond open end funds if you're looking for current income

As an open end funds trader, you may want to receive dividends or interest. If this is your objective, consider investing in income or bond funds. These types of open end funds are considered less risky because the open end funds brokerage company primarily invests in stable companies. As a result, the open end funds investor may look to receive a return that is stable, but not as large.

I recommend: You’ll want to check out Dreyfus’ Premier Limited Term Income Fund. The Franklin Strategic Income Fund not only invests in domestic securities, but in foreign ones as well.

Invest in municipal open end funds if you're looking for tax savings

You may want to save money on taxes. At the same time, you can help your local, state, or federal government, but still make profits. These open end funds are municipal bond funds. Governments rely on these bonds for financing their projects, such as building new schools or improving roads. The interest you receive usually is exempt from federal taxes.

I recommend: Oppenheimer Funds has numerous municipal funds you can choose to invest in. This fund company is another staple in the mutual fund industry, in that it has been in business since 1960. American Century is another open end funds company you will want to check into. Founded in 1958, American Century has focused on producing high returns for the investors.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Use mutual fund software for tracking and analyzing your open end funds investments.