growth stock mutual fund

Growth Stock Mutual Funds:

Generally invest in stocks for growth rather than current income.

Growth stock mutual funds are more likely to invest in well-established companies where the company itself and the industry in which it operates are thought to have good long-term growth potential.

Growth stock mutual funds provide low current income, but the investor's principal is more stable than it would be in an aggressive growth fund. While the growth potential may be less over the short term, many growth funds have superior long-term performance records. They are less likely than aggressive growth funds to invest in smaller companies which may provide short-term substantial gains at the risk of substantial declines.

Mutual fund selection:

They are suitable for growth-oriented investors but not investors who are unable to assume risk or who are dependent on maximizing current income from their investments.