Growth Growth funds seek capital appreciation by investing in companies that reinvest profits rather than pay out dividends. Share prices can fluctuate depending on market conditions. Owners of this type of fund typically receive capital gain distributions when the fund manager sells securities within the portfolio for a profit. Growth and Income Growth and Income funds receive their income from dividends from large company stocks, and interest from bonds. There is also the potential for capital appreciation if the price of the stocks within the portfolio rises, thus increasing the fund's share price.
Investors receive dividends, with potential for capital gains and appreciation.
Owners receive interest, either monthly or quarterly, with possible capital appreciation if share prices rise. While the price per share may fluctuate with changing market conditions, these funds are generally considered to be a conservative investment. Let one of our experienced mutual fund representatives at Broadway Brokerage Services, Inc. help you select the fund that is best for you.