What Is a Growth Stock Mutual Fund?
Growth stock mutual funds share the same physical structure as other mutual funds, but their investment objective is specifically to achieve rapid share price appreciation. These funds rarely pay a large dividend, and can be more volatile than income funds or more conservative stock funds.Mutual FundsA mutual fund is a pool of investable capital that is contributed by many different investors. Each investor owns shares in the fund proportionate to the amount of their financial contribution.Growth StocksA growth stock represents an ownership share in a company that generally has high earnings growth and profitability. Most growth stocks pay little or no dividend.Growth Stock Fund ParametersWhile a growth stock fund must invest the bulk of its assets in growth stocks, funds often invest a portion of their capital in other securities, such as cash or bonds. The fund’s prospectus defines the minimum percentage that a fund must invest in a particular type of security.Fees and ExpensesSome f
