A mutual fund is a way for people to invest in several companies by purchasing only one product – namely, a mutual fund. A mutual fund is one individual fund made up of many different investments, such as stocks, bonds, money markets, and others.
Money managers who manage mutual funds based on growth stock funds invest in companies they expect will grow faster than the average market returns. This involves research and buying company stock believed to increase at a faster pace than others and to sell other company stock that has slowed or is predicted to slow down.
When you think of value stocks, think of items in a “bargain bin.” These are stocks that the portfolio (money) managers believe are being sold at a discounted price but are worth more than the amount they are being sold.