Are blend funds a good investment?

Rapid gains: While not guaranteed, blend funds can potentially provide investors with rapid gains, which are typically derived from the growth stocks in the portfolio. Professional management: Individuals who invest in blend funds don’t have to manage individual stocks themselves. All investments carry some level of risk, blend funds included.

What is the difference between growth stocks and blend funds?

Growth stocks and growth funds seek to profit from companies with substantial potential for capital growth in the form of earnings and capital gains. Blend funds combine both types of investments in a single portfolio. Investors commonly choose blend funds for their diversification.

What is a 'blended' fund?

There are "blended" funds created by portfolio managers that invest in both growth stocks and value stocks. Many managers of these blended funds pursue a strategy known as "growth at a reasonable price" (GARP), focusing on growth companies, but with a keen awareness of traditional value indicators.