If an investor seeks exposure to both potential growth and current income, which fund type should they consider?

• A. Growth Fund
• B. Growth & Income Fund
• C. Income Fund
• D. Sector Fund

Answer: (B)

A fund that aims for both growth and current income blends growth-oriented equities with income-generating assets to provide upside potential while delivering regular distributions. A Growth & Income Fund is designed to do exactly this by combining stocks with solid growth potential and investments that pay income, such as dividend-paying stocks or bonds. This approach is well-suited for investors who want capital appreciation opportunities along with a steady income stream today. In contrast, a pure Growth Fund focuses mainly on price appreciation and typically pays little income, a pure Income Fund prioritizes income and may offer slower growth, and a Sector Fund concentrates on a single industry rather than providing a balanced mix of growth and income across asset classes.