Can anyone tell me the difference between a blend, value, and growth mutual fund. Also in any kind of mutual fund, what is the best one to buy? Include what fund and what kind (blend, value, or growth), and why. Also include personal experiences if possible.
2006-06-18 13:05:48 · 7 answers · asked by TheOCSurf07 1 in Business & Finance ➔ Investing
First, in any fund, buy a no-load. I recommend the Vanguard family because they have very low operating expenses. During any long-to-mid-term, this will be a major factor. as to Value, Growth, and Blend, I would characterize them this way:
Growth: Low/No dividends, high P/E, compared to S&P 500
Value: Low P/E, compared to S&P 500 funds.
Blend: A mixture (blend) of both Growth and Value stocks.
One can utilize any broad "Average" , but S&P 500 is common
The "best fund" depends on your age, goals, and (more or less) your patiences, needs, and what your financial condition is.
2006-06-18 13:28:35 · answer #1 · answered by Puzzleman 5 · 3⤊ 0⤋
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2016-12-24 04:41:17 · answer #2 · answered by Anonymous · 0⤊ 0⤋
A value fund invests in companies that the investment manager considers to be undervalued (the share price is below what the fund manager considers to be the fair price for the company).
Growth funds invest in companies that the investment manager thinks we quickly grow in price, generally companies that are leaders in industries that are still expanding. Think of Microsoft and Intel during the 1980's and early 1990's.
Blend funds can also be called growth and income funds. They combine bonds with stocks from companies that pay dividends and companies that will likely grow in price.
As far as suggesting any specific funds to invest in, you should do your own homework. Morning Star ranks funds according to category and performance over specific periods. Today's hot fund is not necessarily the best fund tomorrow.
Read the prospectuses for all funds which interest you. You are looking for information concerning the fund manager's investment strategy and philosophy, fees, past performance, etc. Keep in mind that a strategy which worked well for a year with falling interest rates and low unemployment may not work in a year with rising interest rates and high commodity prices.
2006-06-18 13:45:10 · answer #3 · answered by Raymond C 4 · 1⤊ 0⤋
It's morningstar bull crap. Every mutual fund has a different investment strategy. There is no specific "great" mutual fund. I do think that American Funds are the best managed mutual funds hands down. They have 5-8 portfolio manager handling each fund that are experts in different industries.
Bottom line… A fund is a great way to grow money for retirement. You can diversify with funds by splitting your money up within one fund family utilizing different investment strategies. I wouldn’t concern myself with fancy names like growth and blend, I’d be more concerned about past results. Contact me if you want help.
2006-06-18 13:13:05 · answer #4 · answered by Will 2 · 0⤊ 0⤋
Basically the PE ratios of the stocks held by the fund. To find a good fund try Morningstar.com or pick up and investor's business daily.
PS
I'd just by some spiders
2006-06-18 13:27:24 · answer #5 · answered by text avitar 2 · 0⤊ 0⤋
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2016-02-16 11:33:34 · answer #6 · answered by ? 3 · 0⤊ 0⤋
I don't know, but I'm interested too. I'm posting because this lets me easily keep track of this thread.
2006-06-18 13:07:59 · answer #7 · answered by Robert B 3 · 0⤊ 0⤋
Raymond C has the best answer...no need to repeat him.
2006-06-18 14:19:36 · answer #8 · answered by Nick C 3 · 0⤊ 0⤋