Growth Mutual Fund Names
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Growth Mutual Fund Names
You can often identify a growth fund by its name. Many of them have words like "value," "growth," "small-cap" and "mid-cap" in them. Others may include references to growth such as "venture," "opportunity," or "development."
Things To Know
- Look for words like "value," "growth," "small-cap," and "venture," among others.
Names for aggressive-growth funds
Aggressive-growth funds are growth funds that try to exploit market volatility to achieve above-average growth by taking above-average risk. Many aggressive-growth funds are small-cap funds that invest in small, promising companies. Aggressive-growth funds are often described by terms such as "enterprise," "small company," or "emerging growth."
Some aggressive-growth funds use specific trading strategies to enhance their values. For example, they might buy and sell very frequently to avoid the risk of a drop in value. Still other aggressive growth funds might use options, which are the rights to buy or sell a stock at a set price before a certain date in the future, to enhance values or hedge against losses.
Names for specialized funds
Specialized funds, also called sector funds, might be growth funds. They invest a significant percentage of their assets in one industry, such as the auto industry, pharmaceuticals, or microtechnology, to name a few. If a specialized fund chooses an industry because of its growth potential in future years, then it might be classified as a growth mutual fund as well.
It is not possible or appropriate to choose a growth fund based upon its name alone. You still need to review a fund’s objectives and strategies in its prospectus to determine whether its management strategy will meet your investment objectives.
