Difference between Growth funds and value fund-02175
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vu mgt613 Production / Operations Management.
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vu mgt613 Mid Term Solved Past Paper No. 1.
Question 1: Difference between Growth funds and value fund.
Answer:
Value Fund
A stock mutual fund that primarily holds stocks that are deemed to be undervalued in price and that are likely to pay dividends. Value funds are one of three main mutual fund types; the other two are growth and blend (a mix of value and growth stocks) funds.
Growth Fund
A diversified portfolio of stocks that has capital appreciation as its primary goal, with little or no dividend payouts. Portfolio companies would mainly consist of companies with above-average growth in earnings that reinvest their earnings into expansion, acquisitions, and/or research and development.
