What Is a Growth & Income Mutual Fund?

Video Transcript

"What is a growth and income mutual fund? A growth and income mutual fund is as the name would describe, investing in equities that are both targeted for growth and for income. So for growth, we're looking at equities that are targeted for much higher valuation in the future, and very steady increase valuation. For income, we're looking at things that pay a high dividend amount. And you may actually have some debt instruments in there, and they may be preferred shares of stock. You may have some bond instruments. But, anything that will produce a nice amount of income. And you will also have stock in there, a lot of times, that will do both. There may be stocks on a rise, and growing, and they're also paying relatively high dividends amount, so there's both the income and the growth in the mutual fund, and that gives you a way to make money in two different ways. And there are other mutual funds that may, you know, be specifically growth or income, if you're interested in just one of those types of mutual funds. But, the growth and income, of course, is a blend of those two."