Question : What is the difference between a blend, value, and growth mutual fund? What is the best fund?
Can anyone tell me the difference between a blend, value, and growth mutual fund. Also in any kind of mutual fund, what is the best one to buy? Include what fund and what kind (blend, value, or growth), and why. Also include personal experiences if possible.
- asked by TheOCSurf07
All Answers:
Answer #1
I don't know, but I'm interested too. I'm postingbecause this lets me easily keep track of thisthread.
- answered by Robert B
Answer #2
It's morningstar bull crap. Every mutual fund hasa different investment strategy. There is nospecific "great" mutual fund. I do think thatAmerican Funds are the best managed mutual fundshands down. They have 5-8 portfolio managerhandling each fund that are experts in differentindustries.Bottom line… A fund is a great way togrow money for retirement. You can diversify withfunds by splitting your money up within one fundfamily utilizing different investment strategies. I wouldn’t concern myself with fancy names likegrowth and blend, I’d be more concerned aboutpast results. Contact me if you want help.
- answered by Will
Answer #3
Basically the PE ratios of the stocks held by thefund. To find a good fund try Morningstar.com orpick up and investor's business daily.PSI'd justby some spiders
- answered by text avitar
Answer #4
First, in any fund, buy a no-load. I recommendthe Vanguard family because they have very lowoperating expenses. During any long-to-mid-term,this will be a major factor. as to Value, Growth,and Blend, I would characterize them thisway:Growth: Low/No dividends, high P/E, comparedto S&P 500Value: Low P/E, compared to S&P 500 funds.Blend: A mixture (blend) of both Growth andValue stocks. One can utilize any broad"Average" , but S&P 500 is common The "bestfund" depends on your age, goals, and (more orless) your patiences, needs, and what yourfinancial condition is.
- answered by Puzzleman
Answer #5
A value fund invests in companies that theinvestment manager considers to be undervalued(the share price is below what the fund managerconsiders to be the fair price for thecompany).Growth funds invest in companies that theinvestment manager thinks we quickly grow inprice, generally companies that are leaders inindustries that are still expanding. Think ofMicrosoft and Intel during the 1980's and early1990's.Blend funds can also be called growth andincome funds. They combine bonds with stocks fromcompanies that pay dividends and companies thatwill likely grow in price.As far as suggesting anyspecific funds to invest in, you should do yourown homework. Morning Star ranks funds accordingto category and performance over specific periods.Today's hot fund is not necessarily the best fundtomorrow. Read the prospectuses for all fundswhich interest you. You are looking forinformation concerning the fund manager'sinvestment strategy and philosophy, fees, pastperformance, etc. Keep in mind that a strategywhich worked well for a year with falling interestrates and low unemployment may not work in a yearwith rising interest rates and high commodityprices.
- answered by Raymond C
Answer #6
Raymond C has the best answer...no need to repeathim.
- answered by Nick C
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