| A value stock fund is one that invests in other | | | | well as the potential for returns that they carry. |
| securities, though in many cases it specializes in | | | | These securities are also not much different from |
| stocks. They are no different from money funds | | | | growth funds, which invest in stocks of |
| or bond funds, but they have some distinguishing | | | | companies that are rapidly growing. Contrary to |
| characteristics, which are in this case, value and | | | | growth funds, value stocks do not necessarily |
| growth. They attract a high dividend rate and | | | | reinvest their profits into the fund for the purpose |
| their objective is mainly long term performance. | | | | of growth, and are very keen on paying dividends |
| Value stock funds are more common with well | | | | to investors. This is done on a yearly basis. |
| established enterprises, companies or corporations. | | | | Compared to sector funds, value stocks are not |
| Some of them actually invest in securities from | | | | discriminatory in terms of the area in which they |
| different countries. Remember that the aim of | | | | invest. This is to say, while they look out for big |
| these securities is to add value to your | | | | and well established companies, they are |
| investment and as such, they seek to capitalize | | | | non-specific on the type of industry that the |
| on diversification. These securities may be | | | | company is registered under. Sector funds on the |
| differentiated from other types of funds like the | | | | other hand are industry specific, meaning that |
| index fund generally by the amount of | | | | they either go for technology securities and utility |
| management fees that is charged on them, as | | | | stocks. |