If you want an investment that seeks to equal a particular sector of the stock market, index funds are considered a way to go. Keep in mind that indexes are unmanaged. In addition, remember you could still lose money. Growth and Income Stocks. The underlying theory is the stocks selected for this type of investment have strong growth potential and solid records of paying dividends.
Growth stocks represent a step up in risk and potential return.
They are the stocks of relatively stable, established companies. Growth stocks may or may not pay dividends. The goal of the money manager is to pick companies for which stock values are expected to increase. Aggressive Growth Stocks. Aggressive growth portfolios carry additional risks and offer the potential for higher returns.