Income Funds
Equity income funds invest in companies that pay higher rate of cash  dividends. Many of the holdings will be in preferred shares and common shares of  mature companies that have less potential for capital appreciation but also are more stable than growth companies. These funds may also include securities from industries that traditionally pay higher dividends than other sectors, such as utilities, REITs, energy stocks and financials. The primary investment objective is current income.

Growth and Income Funds
Growth and income funds will invest both common and preferred shares. The growth objective will be met by investing in the common shares of companies that show higher prospects for earnings growth and share appreciation. The preferred shares, shares in utility companies and high dividned paying shares will be included in the portfolio to meet the portfolio's income objective. An investor who purchases a growth and income fund has both capital appreciation and current income as investment objectives.

Growth Funds
Growth fund managers will add stocks to the fund portfolio that show high probability of capital appreciation. Since growth stocks are more volatile than other stocks, growth funds are suitable for investors who have long-term investment goals and can tolerate fluctuations in principal.

Aggressive Growth Funds
Aggressive growth funds are similar to growth funds, except they invest in companies that are less well-established and that possess certain financial qualities that are inherent in their business models and that make them even more volatile than growth stocks. The goal of these funds is to provide maximum capital appreciation through growth, emerging growth and small-cap stocks. Clients for whom aggressive growth funds are recommended must have a high tolerance for risk.



Specialized Funds

Related Articles
  1. Retirement

    Top 5 Oppenheimer Funds for Retirement Diversification in 2016

    Discover the top five Oppenheimer Funds for diversifying your retirement savings. Learn how to balance your portfolio for maximum safety and return.
  2. Investing

    The 5 Best American Funds

    Discover five of the best-performing mutual funds offered by American Funds, based on the funds' five-year average annualized returns.
  3. Investing

    How Mutual Fund Managers Pick Stocks

    Learn about how mutual fund managers choose stocks based on the type of funds they manage and the investment goals of the funds' shareholders.
  4. Investing

    4 Mutual Funds that Hold Tesla Stock (TSLA)

    Obtain information on the four mutual funds that have significant allocations to Tesla Motors, Inc. in their major portfolio holdings.
  5. Financial Advisor

    The Top 5 Small-Cap Growth Mutual Funds for 2016

    Understand how small-cap growth stocks fit into an investor's portfolio, and learn the best mutual funds in the category to consider for 2016.
  6. Retirement

    Top 5 JPMorgan Funds for Retirement

    Discover five J.P. Morgan mutual funds that provide high returns and excellent diversification of retirement savings. Learn how to allocate assets properly.
  7. Managing Wealth

    Should Balanced Funds Be Part Of Your Portfolio?

    Find out why you should include balanced funds in your portfolio, including the importance of customizability, diversification and professional management.
  8. Retirement

    3 Mutual Funds That Are Top Bets for Retirement in 2016

    Find out which three mutual funds offer the best combination of consistent performance and low cost for your retirement income portfolio in 2016.
  9. Financial Advisor

    Top 4 Conservative Allocation Mutual Funds (VTMFX, TAIAX)

    Discover the top-rated mutual funds in the conservative allocation category, and learn which investors can utilize them most effectively.
Frequently Asked Questions
  1. What is the difference between yield and return?

    While both terms are often used to describe the performance of an investment, yield and return are not one and the same ...
  2. What are the Differences Among a Real Estate Agent, a broker and a Realtor?

    Learn how agents, realtors, and brokers are often considered the same, but in reality, these real estate positions have different ...
  3. What is the difference between amortization and depreciation?

    Because very few assets last forever, one of the main principles of accrual accounting requires that an asset's cost be proportionally ...
  4. Which is better, a fixed or variable rate loan?

    A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest ...
Trading Center