Funds Intermediate: Growth Mutual Funds

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1.
Growth mutual funds rarely make the list of top ten funds from one year to the next because _______.
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They are very volatile. They may not perform as well as "top ten" funds every year, but over the course of many years, they show steady growth.
2.
Growth mutual funds pay few or no dividends because the companies they invest in usually reinvest their profits for more growth.
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True. Reinvesting profits adds to a companys capitalization.
3.
Stocks that sell below their worth are called _______ stocks.
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Value. Stocks that managers believe are selling for less than they are worth are called value stocks.
4.
The Acme Internet Enterprise Fund, which is an up-and-coming Internet mutual fund, is likely to be a sector fund.
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True. According to its name, it invests in one area of the marketthe Internet.
5.
The performance of a growth mutual fund depends upon the _______ of the securities it contains.
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Performance. A fund is only as good as the investments it contains.