Thank you for your attention,This blog is about- beginner stock market investing ..

Q&A–: Dave Ramsey talks about growth stock mutual funds?
Dave always says to invest in growth stock mutual funds. What’s the difference between Growth Stock Mutual Funds and just plain old Mutual Funds.

The answer in the following: (Hint: The answer is not necessarily.)

Answer by M K
growth stock mutual funds are just a specific type of mutual fund. the fund is made up of similar style stocks. in this case, “growth”. there are many other types which are safer or give less returns depending on market conditions. large cap -mid cap -small cap -equity -divedend etc.

Answer by mldjay
He specifically says (from the first source):
“Mutual Funds
Here’s my approach. I select mutual funds that have a winning track record of more than 5 years and preferably more than 10 years. I don’t look at their 1 year or 3 year track records because I think long term. I spread my investing evenly across four types of funds. That means I put 25% of my investment amount into each of the following:
• Growth and Income Funds
• Growth Funds
• International Funds
• Aggressive Growth Funds

But before you get to mutual funds he states:
“If you receive a company match in your 401(k), 403(b), or TSP; invest in those plans, up to the match, first. Once your contribution equals the company match, fully fund a Roth IRA for you and your spouse. If you’ve maxed out your contribution to your Roth IRA and still have money to invest, invest the rest in your 401(k), 403(b), or TSP.”

For more of his advice see the source links.

What do you think? Answer below!

by takomabibelot

stock mutual funds
Welcome！,In the blog: stocks guide ..

stock mutual funds–: New to investing – Why are stock mutual funds doing so poorly?
Almost every mutual fund with major blue chip stocks has taken a hit. Some of them are actively managed. If this is the case, then why don’t these managers “time the market” and get totally out – For example – a fund invested in all Blue Chip stocks…..if they are all losing about 30% this year, then why are the fund managers holding any of it? They say market timing should be reserved for experts – so why don’t they back completely out in a down period like this?

The following is the answer: (Hint: The reader is not the correct identification.)

Answer by Oliver1010
Successful market timing on a regular basis is impossible. Whenver a stock is sold at the top, it is pure luck. Now would be a good time to be buying in small increments, in my opinion. It is crazy to sell a stock when it is way down unless you need the $ immediately.

Answer by Anna
The market is a gambler’s game. The mutual fund managers are gambling that the blue chips will lose less than the other stocks and that they will recover faster.

Unfortunately, the mutual fund managers don’t have a crystal ball that is any better than your crystal ball.

In gambling, there are no experts, only those who are luckier than others.

Answer by Heather
Quite often stocks held in conservative growth and income mutual funds are not sold during market declines for a couple of reasons.
The first is the manager has to follow the fund’s investment objective. If the manager sells out stocks paying a secure dividend, he or she is unable to replicate the income elsewhere.
Second, many of the stocks have been held for years with little or no cost basis. If they were sold, the shareholder would ironically incur a capital gain.
These are just two of many reasons, hope this helps

Answer by robe
The managers aren’t getting out due to additional tax exposure. The holders are getting out due to fear – which causes the fund managers, hedge fund managers and mutual fund managers alike – to have to sell their assets to raise cash. This over abundance of supply leads to less demand and lower prices.

What do you think? Answer below!
_______________________

___________________