Asked by: Abenchara Ladaga
Asked in category: personal finance, mutual funds
Last Updated: 7th Feb 2023

What is a mutual fund that grows and earns income?

A mutual fund or ETF that focuses on growth and income is a type of mutual fund. It has a dual strategy, which combines capital appreciation (growth), and current income through dividends and interest payments. A blend fund that invests in both value and growth stocks is called a growth and income fund.



Similar questions can be asked about the differences between a growth fund or a growth-and-income fund.

A growth fund seeks to increase the capital invested over time. An income fund, on the other hand, targets steady, sometimes rising income that can be paid to investors or re-invested, while preserving the original amount paid in.

The next question is: What are the best mutual funds for growth and income? Best Growth Stock Mutual Funds

Mutual funds Symbol 3-year average total return
Fidelity Advisor Growth Opps FAGOX 15.10
T. Rowe Price Inc Large Cap Growth TRLGX 13.93
Morgan Stanley Inst Advantage I MPAIX 12.10
Wasatch Ultra Growth WAMCX 16.26

What is a growth mutual funds?

A growth fund is a portfolio of stocks that aims to increase capital, but pays little or no dividends. This portfolio is mainly made up of companies that have experienced above-average growth and reinvest their earnings in expansion, acquisitions and/or research & development (R&D).

What does it mean to grow with your income?

An investment objective that includes both income and growth securities is called growth and income. These securities are those of companies with the potential to grow their earnings more quickly than the average company.