Listed below are types of mutual funds that have growth as a primary objective:
1. Growth funds: These funds invest for capital appreciation over the long term by seeking companies with above-average earnings growth.
2. Aggressive growth funds: These funds may use risky investment techniques (e.g., options and short selling) and/or invest in stocks of small, less-established companies.
3. Specialty or sector funds: These funds limit their investments to a specific industry sector such as health care or technology.
4. International funds: These funds invest in securities of countries outside the United States.
5. Global funds: These funds invest in securities worldwide, including the United States.
6. Stock index funds: These funds invest in stocks that comprise one of the broadly based market indexes such as the Standard & Poor's 500.
For additional information about mutual funds and the types of funds appropriate for different types of financial goals, read Unit 6 of "Investing for Your Future," an eXtension basic investing lesson, at www.extension.org/pages/Investing_for_Your_Future.
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