A mutual fund that invests primarily in stocks that are expected to increase in capital value rather than yield high income.
- The growth fund uses primarily stocks which can be protected in down markets by use of 100% hedging with appropriate stock index options.
- Similarly, you shouldn't expect a growth fund - which looks for stocks of rapidly growing companies - to post gains in a bear market.
- Advisers say that if you are investing in a growth fund that pays minimal dividends, the income will almost always fall below this level.
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Syllabification: growth fund
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