As in our last report, stock and mutual fund analyst Morningstar ranks highly in our All The Reviews Reviewed chart. Criteria include what kinds of fees are levied, whether the management of the fund has been stable, and whether the fund's risk level is low. While experts have recently shied away from riskier funds like White Oak, we were pleased by the fund's temerity. It's possible to own stock and bonds in a broad array of U.S. and foreign companies and governments just by holding three or four broadly diversified mutual funds. Over the past several decades, large-cap stocks have returned an average of 13 percent annually.
Growth stocks are securities that investors expect to increase in value over the long term.
Over the past few years, many computer and software companies have been considered growth stocks, because the market they serve has grown so rapidly. Value stocks are those that experts consider underpriced. Some companies have strong, consistent earnings and relatively low expenses, but are still ignored or undervalued by investors. Important but non-glamorous industries like utilities and chemical manufacturing are more likely to be value stocks. Mutual funds often specialize in buying either growth or value stocks.