Funds Beginner: Introduction to Mutual Funds

Introduction to Mutual Funds What Is a Mutual Fund and How Does It Work? Buying and Redeeming Mutual Funds Mutual Fund Expenses Mutual Fund Income and Distributions Stock Mutual Funds Bond Mutual Funds Money Market Mutual Funds Hybrid Mutual Funds Summary of Mutual Funds
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Stock Mutual Funds

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Stock Mutual Funds

Stock funds invest primarily in common stocks of corporations to provide growth in value. They bring the stock market to the investor who may not have the time or ability to pick stocks or construct a portfolio. These funds are usually growth-oriented, since stocks provide growth.

Things To Know

  • Growth funds choose the stocks of companies that show promising growth.

Growth funds are a type of stock fund structured to grow over time. These funds invest primarily in stocks of corporations that are viewed to have potential for growth. Growth funds may choose businesses or smaller companies that have the potential to grow quickly. Growth companies often forgo paying dividends to their customers because growth companies reinvest their earnings.