Quant funds sometimes also take a step towards being like index funds. Only instead of buying stocks that are in the index, they analyze similar companies and if the numbers show that the company may provide higher growth, they buy the stock, hoping to beat the index.

Quantitative funds have their advantages and disadvantages. If you are a strong believer that mathematics can help predict a stock, this might be the type of fund for you. However, numbers and statistical analysis aren't always right. And because the analysis on the company can change greatly in a short period of time, the fund manager may decide to quickly sell the stock and the capital gains can add up to a big tax bill when tax season comes around.

Green Funds

Green funds are sometimes called "socially responsible mutual funds". These funds were created by fund families for people whose strong political, social, and environmental beliefs keep them from buying stocks in companies whose practices go against their ideas. These funds may choose not to buy stocks in companies that have bad evironmental records, those that sell products in underdeveloped countries, and companies that contribute to health problems such as tobacco companies.

Green funds are great for those who refuse to put their money in mutual funds because they don't want their money going towards companies that they are stongly opposed to. It gives them a chance to earn a return which will compound over time while still practicing their beliefs.

However, these funds have their limitations. The number of stocks that the funds can invest in is lower than the average fund due to the limitations. Because of this, green funds rarely have years of extraordinary performance but they have consistently provided at least average growth.

Whether you are a person who believes heavily in technical analysis or your beliefs, both types of mutual funds are great because they offer you more options on where you can put your money.