Stock funds

• Large-cap funds invest in large company (large capitalization) stocks, such as those listed on the S&P 500® Index. The S&P 500 Index is a market-cap-weighted index that represents the average performance of a group of 500 large-capitalization stocks. To be included in the large-cap category, a company typically has a market capitalization value of more than $10 billion.¹

• Mid-cap funds invest in stocks of medium sized (mid capitalization) companies, such as those listed on the S&P MidCap 400® Index, which represents the average performance of a group of 400 mid-sized stocks. Mid-cap companies typically have a market value between $2 and $10 billion.¹

• Small-cap funds invest in small company (small capitalization) stocks, such as those listed on the S&P SmallCap 600®. Small-cap companies typically have a total market value between $250 million and $2 billion.¹

• Growth funds invest in stocks of companies expected to have above-average earnings growth, and that reinvest their earnings in their businesses. The potential for returns from growth funds comes primarily from the rise in the fund’s market price, rather than dividends.

• Value funds invest in stocks that are considered undervalued relative to their intrinsic worth. These funds often pay dividends and are often preferred by investors looking for long-term growth.

• Equity income funds are stock funds that invest primarily in dividend-paying stocks that are expected to generate an income stream for their shareholders.

• Domestic equity funds, for U.S.-based investors, are funds that invest in stocks issued by companies based in the U.S.

• International equity funds invest in stocks outside the U.S.

• Emerging market equity funds invest in stocks in developing economies around the world, such as Latin America, Africa, Eastern Europe and Asia.

• Global equity funds invest in stocks anywhere around the world, including the U.S.

• Sector equity funds invest in stocks in specific industries, such as utilities, health care, technology or energy.
  

Bond funds

• Government bond funds invest in debt securities issued by the U.S. Treasury, but also may invest in debt securities issued by government agencies. Some government bond funds specialize in categories such as government agency securities, short-term bonds and intermediate-term bonds.

• Long-term bond funds invest in bonds maturing in more than 10 years.

• High-yield funds invest in bonds that pay a relatively high interest rate compared with most other bonds on the market. (These bonds are sometimes referred to as “junk bonds.”) High yield bonds are typically issued by companies with credit ratings below investment grade. Because of their higher credit risk, these bonds must typically pay higher rates of interest than investment-grade bonds of comparable maturity in order to attract investors.

• Municipal bond funds invest in bonds issued by state or local governments or their agencies. They also are known as “tax-exempt bond funds” because interest earned on municipal bonds is generally exempt from federal income taxes, and, in some cases, state and local taxes as well.

• International bond funds invest in debt securities issued outside the U.S.

• Emerging market bond funds invest in debt securities issued in developing countries in Latin America, Africa, Eastern Europe and Asia. While these funds tend to be riskier than bond funds of developed countries, they typically compensate for that risk by offering a higher yield.

• Global bond funds invest in debt securities issued around the world, including the U.S.

• Money market funds typically invest in short-term government debt securities such as Treasury bills, and many seek to maintain a net asset value of $1 per share.

Mixed-asset funds

• Asset allocation funds (sometimes referred to as target risk funds) invest in both stocks and bonds while seeking to maintain a specific risk profile, such as aggressive, conservative, moderately aggressive or moderately conservative. The most aggressive have a higher allocation to stocks and a smaller allocation to bonds. The most conservative have a higher allocation to bonds and a smaller allocation to stocks.

• Balanced funds invest in both stocks and bonds, usually in equal or balanced proportions. A common mix may be 60% stocks and 40% to bonds or 50/50. A balanced fund is essentially the same as a moderate asset allocation fund.

• Income funds can be stock funds, bond funds or a combination of both. They invest in securities that generate an income stream for their shareholders, primarily through dividends (if they invest in stocks) or interest payments (if they invest in bonds). Income funds that invest primarily in stocks are sometimes referred to as equity income funds.

• Target-date funds invest in both stocks and bonds in a mix that becomes more conservative over time, meaning the fund gradually allocates less of its assets to stocks as it approaches its target date. That date generally represents the anticipated year an investor in the fund plans to retire.

Whether you hope to invest in one mutual fund or several, you’ll find many options designed to meet your objectives.

Thrivent Mutual Funds offers more than 20 no-load mutual funds, including a variety of stock, bond and asset allocation funds. See: Investments for goals of all types.

¹ “Market Cap Explained.” FINRA. 2022. www.finra.org/investors/insights/market-cap (March 3, 2026).