If you want to invest in a U.S stock mutual fund, you will find three different types such as aggressive growth, long term growth, and growth and income. This information may help you to decide which is best for you.
Equity or stock funds:
Aggressive Growth funds: These funds invest in stocks of fast growing companies or small companies like Internet companies or other type of firms which are new age technology firms. By investing in stocks of small to mid-sized companies these funds attempt long term growth. These companies’ stocks have greater capability than the market but these also have greater risk exposure
Growth funds: By investing in stocks of well known, large corporations, these funds get long term growth. These funds are less changeable than funds that invested in mid and small sized companies they don’t provide as much growth. These funds are stable than aggressive growth funds.
Combined or Hybrid funds:
Growth and income funds: These funds are invested in bonds and stocks. Bonds for their income producing and stocks for growth potential. These funds don’t have high growth potential as growth funds but they tend to be less changeable in price.
Bond or fixed income funds:
Income funds: These funds produce a stable stream of income, generally quarterly or monthly through investing in bonds or other income producing securities. These offer more income and low risk than funds which are invested in stocks or a combination of bonds and stocks.
So according to investor requirements, he can choose any one of these to invest his money to get good returns in future.