Every Mutual Fund Has a Stated Investment Objective

question 101

Essay

Every mutual fund has a stated investment objective. Disclosure of the investment objective is required by the SEC, and is used to classify a mutual fund into one of several categories. Briefly explain the investment objective of each of the following categories.
(a) growth funds
(b) aggressive growth funds
(c) equity-income funds
(d) balanced funds

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Definitions:

Meningitis

Meningitis is an inflammation of the membranes (meninges) surrounding the brain and spinal cord, often caused by infection and requiring urgent medical attention.

Pneumonia

An inflammatory condition of the lung affecting primarily the microscopic air sacs known as alveoli, usually caused by infectious agents such as bacteria, viruses, fungi, or parasites.

Minimum Inhibitory Concentration (MIC)

The lowest concentration of an antimicrobial agent required to prevent the growth of a particular bacterium in vitro.

Antibiotic

Medicinal drugs used to fight bacterial infections by killing or inhibiting the growth of bacteria.