Over the past few years, many computer and software companies have been considered growth stocks, because the market they serve has grown so rapidly. Value stocks are those that experts consider underpriced. Some companies have strong, consistent earnings and relatively low expenses, but are still ignored or undervalued by investors. Important but non-glamorous industries like utilities and chemical manufacturing are more likely to be value stocks. Mutual funds often specialize in buying either growth or value stocks.
Some funds buy both types of stocks, though.
These are called blend funds. And the Winners Are Because it combines high returns with low risk, the Meridian Value Fund wins more praise from experts than any other small-cap fund that's open to new investors. This blend fund buys both growth and value stocks, so it encompasses the entire small-cap market. However, we did not include Emerging Growth in ConsumerSearch Fast Answers because it closed to new investors on Apr. 28, 2000. The fund's manager explains that he wants to keep it to a manageable size.