Which fund is composed of a mix of growth and income stocks?

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

Answer: (C)

A fund that blends growth and income stocks is designed to offer both potential for capital appreciation and a stream of dividend income. Growth stocks aim for rising earnings and share price, often with higher volatility and less emphasis on paying dividends. Income stocks focus on steady dividends or other income, sometimes with more modest growth prospects. A Growth & Income Fund combines these approaches, holding a mix of growth-oriented and income-generating stocks to try to deliver both growth and income for investors. The sector fund, by contrast, focuses on a single industry, not a broad mix; a growth fund emphasizes high growth potential with little emphasis on income; and an income fund prioritizes income over growth. So the fund described as a mix of growth and income stocks best matches a Growth & Income Fund.