---
title: "Understanding Fund Types"
description: "Learn about different fund types and how Singapore investors can understand their features for informed investment decisions."
slug: "fundtypes"
locale: "en"
region: "sg"
region_label: "Singapore"
url: "https://longbridge.com/sg/en/support/topics/fundtrading/fundtypes.md"
updated_at: "2025-12-04T08:34:29.000Z"
category: "fundtrading"
category_title: "Fund trading"
references:
  related:
    - title: "Understanding fund-related concepts"
      url: "https://longbridge.com/sg/en/support/topics/fundtrading/fundterminology.md"
    - title: "Fund Subscription and Redemption Rules"
      url: "https://longbridge.com/sg/en/support/topics/fundtrading/fundrules.md"
    - title: "Fund FAQs"
      url: "https://longbridge.com/sg/en/support/topics/fundtrading/faqs.md"
    - title: "Fund Fee Rules"
      url: "https://longbridge.com/sg/en/support/topics/fundtrading/fundtradingfees.md"
---

# Understanding Fund Types

[Table of Contents](https://longbridge.com/sg/en/support/toc.md)

Common types of funds include money market funds, bond funds, stock funds, commodity funds, and balanced (hybrid) funds. Each type differs significantly in investment scope, risk-return characteristics, and liquidity. Below is a detailed introduction.

## 1\. Types of funds

Funds can be broadly categorized into money market funds, bond funds, stock funds, commodity funds, and balanced (hybrid) funds based on the primary asset classes they invest in.

![](https://pub.pbkrs.com/uploads/2025/dbdf6b294251b08dbb82fae2e2725c2a)

## 2\. Investment Scope and Features

![](https://pub.pbkrs.com/uploads/2025/a95d3c75625cca9183da284ffb8e6bf5)

**Key takeaways:**

-   **Money market funds**: Low risk, low return. Invest in short-term deposits and bills. High liquidity. Suitable for conservative investors and short-term fund placement.
-   **Bond funds**: Low to medium risk, moderate return. Primarily invest in government and corporate bonds. Relatively stable returns with some volatility.
-   **Stock funds**: High risk, high return. Mainly invest in stocks (may target specific markets or industries). High volatility. Suitable for aggressive investors.
-   **Commodity funds**: High risk. Invest in commodities like gold and crude oil. High price volatility. Suitable for hedging or speculative purposes.
-   **Balanced (hybrid) funds:** Flexibly invest in stocks, bonds, and money market instruments. Aim to balance returns and risks.

**Disclosures**

*The market involves risks, and investing requires caution. The above introduction is intended to help you understand the potential characteristics of fund products and does not constitute investment advice. Before making any investment decisions, you should carefully review the information and relevant documents provided by fund sponsors and products to assess whether you are suitable for investing in such fund products and your ability to bear risks.*

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice. Content provided by [Longbridge](https://longbridge.com).