question archive Growth funds: U
Subject:FinancePrice:2.87 Bought7
Growth funds: U.S. Government Bond Funds Growth and income funds Life cycle funds Sector funds Index funds Balanced funds International funds Small company funds Asset allocation funds Aggressive growth funds The securities found in a growth fund would primarily consist of? : ?(Select the best answer? below.)
A. a heavy weighing in a single industry comma for example a portfolio consisting of 65 % technology stocks.
B. federal agency securities.
C. stocks and bonds that are selected based on investor characteristics.
D. companies with strong earnings and some dividends.
The answer should be (D)
Growth funds consist of companies which have high earning potential. Hence, companies with strong earnings and some dividends will be reinvesting its earnings into profitable projects and hence growth of the company will be more in future.