Keep it short and simple. Thanks!
2007-01-18 08:07:36 · 4 answers · asked by ldjones99 2 in Business & Finance ➔ Investing
Different strategies. Growth funds look for smaller companies they feel are going to take off. Higher potential return, but higher risk as well. Value funds look for companies whose stock prices are lower than the value of the company divided by the number of stocks, regardless of size or growth potential. Value funds are typically more stable over the long haul, but don't provide the upper potential of growth funds.
2007-01-18 08:14:23 · answer #1 · answered by Jim C 4 · 0⤊ 0⤋
A Value fund pays higher dividends
A Growth fund pays lower dividends but the stock (or share price) is suppose to increase.
2007-01-18 16:12:15 · answer #2 · answered by DieNarrin 2 · 0⤊ 0⤋
The Growth one is riskier and generally offers higher rewards. However the risk of not making the reward is higher.
The Value is lower risk but safer. Your rewards are more likely to happen but be lower.
2007-01-18 16:13:02 · answer #3 · answered by hawkthree 6 · 0⤊ 0⤋
oGrowth funds invest in the stock of companies whose profits are growing at a rapid pace.
oValue funds buy companies that appear to be cheap, relative to their earnings.
http://www.personalfinance101.org/?utm_source=YH&utm_medium=link
2007-01-18 16:11:38 · answer #4 · answered by personal_finance_101 3 · 0⤊ 0⤋