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    Ask This About Best Growth and Income Mutual Funds

    A growth and income fund is a certain type of mutual fund. It uses a strategy growth (appreciation) and income generation though interest payments or dividends. A growth and income mutual fund can only invest in equities or combinations of investments like stocks, bonds, and securities like real estate investment trusts. People who want to invest money and like taking moderate risks with their investments will find the perfect amount of gamble with a growth and income fund. The best growth and income funds right now are Fidelity MSCI Real Estate Index, Guggenheim S&P 500 Equal Weight, and iShares Global REIT. If you’re interested in this type of investment, ask these questions to learn more.

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    How much risk comes with it?
    Growth and Income Mutual Funds come with a fair amount of risk, but nothing too outrageous. Investors who can handle a moderate amount of risk may find greater potential from a Growth and Income fund.
    What is the main focus of a growth and income portfolio?
    A growth and income portfolio favors stability but with returns that will still outpace inflation. This requires more risk tolerance and a disregard for volatility.
    What is capital growth?
    capital growth is the increase of investments over a period of time. This is one of the most important considerations for any investor.
    Will this meet my income needs?
    One of the advantages of a growth and income mutual fund is that it is made to combat the rising prices of goods and services to ensure that you have more at the time of retirement in order to pay for these goods and services you will need.
    What is the expense ratio?
    The expense ratio will be determined by the finanacial mangement company of your choice. You may have to pay more fees for a company that manages your fees more often.And this does not guarantee a better profit.
    When should I sell?
    When you should sell your investments will depend entirely on your financial advisor. If you, yourself do not know the answer to this question, do not worry, because the individual managing your portfolio will.
    How stable are income funds?
    Income funds are not particularly stable. When interest rates rise, share prices generally fall and when interest rates fall, share prices will rise.
    What's my time horizon?
    Your time horizon is based on your age and represents your exposure to equities. The time horizon of a 25-year-old is longer than that of a 65-year-old facing retirement. Generally the longer the time horizon the more stocks that should be held.