Stock Funds
Stock funds invest primarily in stocks. But stock fund portfolios vary, depending on the fund's investment objectives. For example, some stock funds invest in well-established companies that pay regular dividends. Others invest in young, high-technology firms or companies that have been operating below expectation for several years.
Like individual investors, funds may buy blue-chip stocks for income and safety, growth stocks for future gains, value stocks for stability and growth, and cyclical stocks to take advantage of economic booms. For investors, the major difference in buying a fund rther than individual stocks is the diversity they can achieve for the same amount of money.
Like individual investors, funds may buy blue-chip stocks for income and safety, growth stocks for future gains, value stocks for stability and growth, and cyclical stocks to take advantage of economic booms. For investors, the major difference in buying a fund rther than individual stocks is the diversity they can achieve for the same amount of money.
