By contrast, older, more established companies with slower growth rates may not need to reinvest all of their profits back into the company. So, shareholders make their money by receiving a quarterly dividend. Another way fund managers characterize funds is by the kinds of stocks in the fund. Companies that grow faster than a pack of paparazzi swarming a celebrity are known as growth stocks. While those potential profits may be large, generally value stocks are not growth stocks.
Growth stocks tend to be priced at a premium compared to what the company's assets are worth.
Many funds also describe themselves according to where the companies whose stocks they hold are based. Here in the U.S., funds with stocks of U.S. companies in them are known as domestic funds while funds with stocks of international companies in them are known as international funds . And that's just the tip of the iceberg. That's what index stock funds do. There are more stock market indexes than there are flavors of ice cream at Baskin Robbins.