{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Long Term Funds - Long Term Funds 1 Stock Funds a Capital...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Long Term Funds 1. Stock Funds a. Capital Appreciation Versus Income- trade off capital appreciation and dividend income i. Capital appreciation- this may mean investing in unproven companies or companies perceived to be out of favor ii. Growth- seek capital appreciation, but they tend to invest in larger more established companies, such funds may be somewhat less volatile iii. Growth and income- capital appreciation is still the main goal, but part of the focus is on dividend paying companies iv. Equity income- these funds focus on stocks with high dividend yields 1. Among these four funds, the greater the emphasis on growth, the greater the risk b. Company Size-Based Funds i. Small company-refers to the total market value of the stock, called small-cap. Small cap range from $10 million to $1 billion ii. Midcap- these stocks are too small to be in the S&P 500 index iii. Large company- “large cap” funds invest in companies with a market value in excess of $5 billion c. International Funds i. The 2 fund groups that invest outside the US are: 1. Global- these funds have substantial international holdings but also maintain significant investments in US stocks 2. International- similar to global funds, except they focus on non- US equities a. International funds may focus on particular regions on the world, such as Europe or South America,
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}