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Stock funds invest primarily in common stocks of
corporations to provide growth in value. They bring the stock
market to the investor who does not have the time or ability to
pick stocks or construct a portfolio. These funds are usually
growth-oriented, since stocks provide growth.
Growth funds are a type of stock fund structured to grow
over time. These funds invest primarily in stocks of corporations
that show potential for growth. Growth funds may choose businesses
or smaller companies that have the potential to grow quickly.
Growth funds often forgo paying dividends to their customers
because growth companies reinvest their earnings instead of paying
them to investors.
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