However, there are a number of different options available to those with long-term objectives. Conservative Equity Funds can serve as a core investment for investors who want the potential for long-term growth of stocks but also want to manage risk. Investors frequently use conservative equities to serve as building blocks in their long-term portfolios. These more conservative stock choices help to soften the wide swings of more aggressive investments, while allowing the overall portfolio to maintain a growth orientation. These funds can also be used as an initial step into stock investing.
Investors often hear or read about the advantages of investing in stocks.
But many first-time stock investors are wary of the wide price fluctuations that accompany more aggressive stocks or stock funds. For these investors, a smart way to become more comfortable investing in the market may be to begin by choosing more conservative stock investments. Various types of conservative equity funds include Balanced Funds, Growth and Income Funds, and Index Funds. Growth Funds are designed to achieve long-term capital growth. The dividend income is not an important feature of these funds.