EXAMPLES OF GROWTH FUNDS
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You can often identify a growth fund by its name. Many of them
have words like "value," "growth," "small-cap" and "mid-cap" in them. Others may
include references to growth such as "venture," "opportunity," or
Aggressive-growth funds are similar to growth funds. Their portfolios, however, are
even more strongly growth-oriented.
Many are small-cap funds and invest in small, promising
companies. Aggressive-growth funds are often described with terms such as
"enterprise," "small company," or "emerging growth."
Some aggressive-growth funds use specific strategies to raise
their values. For example, they may buy and sell very frequently to avoid the
risk of a drop in value.
Still others may
use options, which are the rights to buy or sell a stock at a set price
before a certain date in the future.
Specialized funds, also called sector funds, invest
primarily in one industry.
Sector funds may invest in the auto industry, pharmaceuticals, or
microtechnology, to name a few. Usually, there are stocks from other industries
in the fund as well. To be classified as a specialized fund, a fund must put at
least 25 percent of its money into one industry.
Not all specialized funds are growth funds. Those that are may
choose a certain industry because it is expected to be a great performer for
many years to come.
Now, a brief word about growth fund