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Summary of Growth Mutual Funds

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Summary of Growth Mutual Funds

Growth mutual funds are an excellent investment choice for the long-term investor. Growth funds are portfolios of investments chosen for their long-term appreciation potential.

You can find growth funds that invest in subsets of the various markets such as small or large companies as well as in companies in one or more related industries. Growth funds can be conservative or aggressive, too.

Growth mutual funds generally do not pay current income dividends but do distribute capital gains dividends periodically. Since they invest primarily in common stock, you will notice that they mimic various market indices. If your investment objectives have a long future time horizon, then you ought to consider whether a growth mutual fund makes sense in your portfolio. Be sure to read the prospectus to see if the fund’s goals and objectives match your own goals, time horizon, and risk tolerance. In addition to finding a fund that meets your needs, be sure to take fees into consideration as well, as they will impact the fund’s ability to perform.

What you have learned

  1. What Are Growth Mutual Funds?
  2. Composition of Growth Mutual Funds
  3. Growth Mutual Fund Names
  4. Growth Mutual Fund Performance

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