Stock Funds a stock fund's value can be rise and fall quickly (and dramatically) over the short term, historically stocks have performed better over the long term than other types of investments including corporate bonds, government bonds, and treasury securities.Overall "market risk" poses the greatest potential danger for investors in stocks funds. Stock prices can fluctuate for a broad range of resons such as the overall strength of the economy or demand for particular products or services.Not all stock funds are the same.
For example:
Growth funds focus on stocks that may not pay a regular dividend but have the potential for large capital gains. Growth funds generally incur higher risks than income funds (debt) in an effort to secure more pronounced growth.Growth funds are suitable for investors who can afford to assume the risk of potential loss in value of their investment in the hope of achieving substantial and rapid gains. They are not suitable for investors who must conserve their principal.
