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i really don't have any idea about growth & diversification fund. what is " growth & diversification fund"? what is advantage and disadvantage of growth & diversification fund?

2006-10-11 03:33:54 · 5 answers · asked by lex y 1 in Business & Finance Investing

5 answers

A growth fund is a diversified portfolio of stocks that has capital appreciation as its primary goal, and thereby invests in companies that reinvest their earnings into expansion, acquisitions, and/or research and development.

A mutual fund classified as a "diversified fund" will actively maintain a high level of diversification in its holdings, thus reducing the amount of risk in the fund, since events that affect one sector won't have the same effect on other sectors. For example, the fund may restrict its purchases so it is not dominated by companies from one industry or representing one market capitalization size.

But you can do the same thing yourself by buying an ETF, or investing in a index fund, like the one mentioned here in the Unified Theory that follows.

Unified Theory of Everything Financial
Revealed in Dilbert and the Way of the Weasels
By Scott Adams

1.Make a will
2.Pay off your credit cards
3.Get term life insurance if you have a family to support
4.Fund your 401k to the maximum
5.Fund your IRA to the maximum
6.Buy a house if you want to live in a house and can afford it
7.Put six months worth of expenses in a money-market account
8.Take whatever money is left over and invest 70% in a stock index fund and 30% in a bond fund through any discount broker and never touch it until retirement
9.If any of this confuses you, or you have something special going on (retirement, college planning, tax issues), hire a fee-based financial planner, not one who charges a percentage of your portfolio

Check the bottom line: A portfolio with an asset allocation of 70% in Vanguard's Total Stock Market Index (VTSMX) is doing just fine, performing remarkably close to the S&P 500 index. Moreover, that simple two-fund portfolio is perfect for the vast majority of America's 95 million investors who are passive much as Adam's Dilbert character.

The truth is, most investors have little or no interest in Wall Street's casino action; all the time-consuming research, the sophisticated stock-picking tricks, the costly trading necessary to play in a market drowning in 10,000 stocks, 18,000 funds and more than 100,000 bonds. Most investors have jobs and kids as their top priority. Moreover, Dilbert's simple two-fund portfolio compares favorably with our other lazy portfolios.

2006-10-11 04:15:43 · answer #1 · answered by dredude52 6 · 0 0

1

2016-12-25 04:39:23 · answer #2 · answered by Anonymous · 0 0

Firstly, a fund is a group of stocks, bonds or other securities that is oftentimes managed by one or more people. The term growth fund refers to the type of stocks within the fund. These "growth" stocks tend to be faster growing companies-like Microsoft or Google for instance. Diversification refers to the types of investments within the portfolio. A fund may be considered diversified if companies from several different industries are represented in the fund. A growth and diversification fund can be considered a fund that offers a variety of faster growing companies. Growth funds tend to offer more long term monetary gains, but they may also offer larger short term losses. To minimize these losses, fund managers may decide to diversify the investments. A growth and diversification fund may be suitable for someone who has a longer term investment philosophy-say 5 to 10 years.

2006-10-11 04:24:20 · answer #3 · answered by Todd S 1 · 0 0

The area today called the west bank was part of the area promised as a Jewish homeland in the Balfour Declaration 1917. Jews were forced to leave the west bank during the 1920s by Arab violence. Jews had always been living there. In 1948 the UN voted to petition the area, in to separate Jewish and Arab states, the Arabs rejected petition. The kingdom of Jordon illegally occupied the west bank as did Egypt Gaza. Israel toke control of the west bank and Gaza in 1967 after being forced to fight a defencive war. Legally the west bank can not be said to belong to any one people. while some of us who are pro Israel may not agree with building on disputed land, I will make the following points. The Israeli Government can not very well ask people already living there to have babies somewhere else. An Arab kingdom of Jordon exists where Jews are not permitted to live. I like your QA, and added you as a contact, as you reciprocated. If you have any questions about Israel feel free to email me.

2016-03-28 04:52:13 · answer #4 · answered by Anonymous · 0 0

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2014-09-24 09:08:28 · answer #5 · answered by Anonymous · 0 0

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