The money will automatically be moved from your designated bank account to your mutual fund account. Additionally, any dividends or capital gains earned on your funds can be reinvested automatically, at no sales charge. Mutual funds are not FDIC insured and are not obligations or deposits of Broadway National Bank nor guaranteed by the Bank. They involve investment risks, including the possible loss of principal amount invested. 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.