Growth And Income Funds

Growth and Income Funds are funds that receive both growth and income. Growth is when an investment increases in value over time, whereas income is when there is sometime of regular payment, such as an interest or dividend. As stated earlier, growth and income funds, a type of mutual fund, achieve both of these investment properties. In order for this to be accomplished, the fund will be used to buy man small cap stocks as well as large cap stocks, the former to obtain growth and the latter to obtain income. As well as stocks, a growth and income fund might also invest in bonds. Growth and income funds are not considered very risky, but do pose risks to the investor. Some companies have been known to post high income as well as high amounts of growth in their stocks, making them a popular choice for growth and income funds.

Fast Facts

  • growth funds, by themselves, are generally considered to be considerably risky

growth and income funds - Financial Planners, Articles and Q&A

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