Investment styles can range widely among stock mutual funds, but it’s usually style that dictates the universe of companies from which a fund manager chooses specific stock holdings.¹

Stock-Picking Strategy

• Value Funds — Stocks of companies that appear to be attractively priced based on their assets and earnings history. These stocks often produce consistent dividend income.

• Growth Funds — Stocks with above-average growth prospects due to their strong earnings and revenue potential.

• Blend Funds — Sometimes referred to as core holdings, these funds invest in both growth and value stocks.

• Large Cap — The top 200 to 250 stocks ranked by market value, roughly $10–12 billion and higher.

• Mid Cap — Generally, the next 750 companies, valued at approximately $1–10 billion.

• Small Cap — The remaining companies, usually worth $1 billion or less.

The median market cap of a mutual fund generally demonstrates the size of companies that a fund chooses, but the market values of some holdings can rise as stock prices appreciate.

Determining whether a mutual fund is right for you depends on your own investment objectives and risk tolerance, as well the other holdings in your overall portfolio.

1) There are fees and expenses associated with investing in mutual funds, including portfolio management fees and expenses and sales charges. Mutual funds are sold by prospectus only. Be sure to read the prospectus carefully before deciding whether to invest. The return and principal value of stock mutual funds fluctuate with changes in market conditions. Shares, when sold, may be worth more or less than their original cost. Investments seeking to achieve higher returns also involve a higher degree of risk.
2) Diversification does not guarantee against loss; it is a method used to help manage investment risk.