| Before one can decide to invest in mutual funds, | | | | deeply involved in technological advances.The term |
| they should take time to get to understand the | | | | aggressive gives you a hint on the kind of growth |
| different categories and sub-categories that exist | | | | to expect from this type of stock. In most |
| under this type of investment. It is also wise to | | | | cases, the returns have proven to increase rather |
| understand the criteria used in classifying them. | | | | than decrease. If you are interested in a |
| This will give an investor some insight on the risk | | | | long-term investment, this is the stock for you. |
| involved, the potential rate of return as well as | | | | Long-term growth stocks are more like the |
| the regulation and taxes the investment is subject | | | | aggressive ones and they are more stable. |
| to. | | | | The reason is because they are invested in large |
| There are three major types of stocks that an | | | | companies which tend to have more stable |
| investor may choose from and these are | | | | businesses and steady growth rates. Such |
| aggressive-growth stocks, long-term growth | | | | investments are favorable for long-term |
| stocks, or growth & income stocks. Just like | | | | investments for investors who are not |
| other types of mutual funds, stocks have big | | | | comfortable with the aggressive and sudden |
| potential for great returns and all one needs to do | | | | changes that are characteristic of aggressive |
| is to compare the finer details so as to make an | | | | stocks. Growth and income mutual funds are |
| informed and objective choice. | | | | invested in more stable companies and they are |
| Aggressive-growth stocks are characteristic of | | | | good for cautious investors. |
| small but fast growing companies like those | | | | |