If the market conditions are not right, the portfolio manager may hold a large cash position. Growth funds are generally considered to be more conservative than capital appreciation or aggressive growth funds. Investors should be aware that small stocks run in market cycles and can be extremely volatile. Small stocks are generally considered very speculative and volatile with the risk of above-average losses in an attempt to receive higher gains. The funds generally buy stocks that pay high dividends and show good earnings growth.
Risk of loss is considered average.
Unlike most mutual funds that are diversified across different industries, sector funds are more specific. Although the funds are more diversified than a single stock, there is nothing in their portfolios to offset a downturn in the sector. Since sectors are highly volatile, they offer opportunity for large gains to investors who ride the right wave. If you would like more information on investing in Stock Funds , please E-Mail us. By using this Site, you agree to certain Terms and Conditions which Tucker Anthony may modify.