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A growth fund is comprised of investments that typically have relatively high valuations and whose underlying business is expected to grow very rapidly. A value fund is comprised of investments that have relatively low valuations and whose underlying business is not expected to grow quickly. A blended fund is comprised of both growth and value investments.

In stock investments, one of the most widely used metrics used to differentiate growth and value stocks is the price-earnings (P/E) ratio. Growth stocks typically have high P/E ratios and value stocks typically have low P/E ratios.

Checkout The Motley Fool's Web site for more information:

http://www.fool.com/mutualfunds/glossary.htm

2007-01-19 06:15:24 · answer #1 · answered by Ian 3 · 1 0

Different screeners have different opinions at the cutoff. Generally anything resembling a company in the SP 500 is value (often called blue chips from poker which mark the highest value), anything resembling a company in the Russel 2000 (small caps) is a growth stock. A blend could be companies resembling both (for instance a mutual fund on energy could be buying stock in every big or small company that deals with energy).

2007-01-19 18:51:46 · answer #2 · answered by gregory_dittman 7 · 0 1

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