You may need some income and some capital growth, for instance. Instead of choosing separate income and growth funds, you may prefer a single fund that invests for both objectives. This chart is for illustrative purposes only and is not intended to represent an investment in any specific security. Past performance cannot guarantee future results. The markets will always fluctuate, and waiting for the ideal moment is an exercise in futility.
Time is money in the investment world.
You want to put your money to work, add to it regularly if possible, and, if you can forgo the current income, reinvest the earnings to benefit from the power of compounding. As the following chart shows, compounding over time can mean a difference of hundreds of thousands of dollars in investment returns. Answering this frequently asked question is easy. The best time is now . How Mutual Funds Are Organized A mutual fund company may offer anywhere from one to a dozen or more different types of funds.