Small-Cap funds invest in the stock of small and new businesses which have greater potential for growth, yet have higher risk of short term volatility. Growth Seek high returns, yet have less volatility than aggressive growth. Investment portfolios consist of large, medium and small sized companies. Managers tend to utilize more conservative strategies than their aggressive fund counterparts. Returns match the market.
Management fees are usually extremely low.
Bonds provide a safety cushion during volatile periods, dividends and income provide extra capital appreciation, in addition to appreciation made from stock appreciation. Income Funds that invest in bonds. Money is made from bond income, and also from bonds which increase in value. Capital Preservation Money market mutual funds preserve initial investment. Interest rates vary, but are usually much higher than in a savings or money market account.