Growth funds tend to have higher levels of risk, focus on capital appreciation and invest in growth companies, which usually reinvest most or all profits for research and development (rather than paying a dividend).

Series 6 - Investment Company And Variable Contracts Products Representative Exam

Training Mode

Unit 1 Unit 2 Unit 3 Unit 4

Growth funds:

Invest in companies whose stocks are currently undervalued and tend to have elevated levels of risk

Invest in companies whose stocks are currently undervalued, tend to have elevated levels of risk and focus on capital appreciation instead of income

Tend to have elevated levels of risk and focus on capital appreciation instead of income

Tend to have elevated levels of risk, focus on capital appreciation instead of income and invest in companies who tend to reinvest their profits for R&D