common stock fund

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Common stock fund

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Common Stock Fund

A mutual fund consisting only of common stocks. A common stock fund may be high-risk if it invests primarily in start-ups and recent IPOs, or it may be low-risk if it invests in established companies with stable returns.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

common stock fund

A mutual fund that limits its investments to shares of common stock. Common stock funds vary in risk from relatively low to quite high, depending upon the types of stocks in which the funds invest.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
These funds will generally include a money market fund (see Chapter 1), one or more common stock funds, bond funds, and a fund that specializes in tax-exempt securities.
Growth Funds--more aggressive than common stock funds, these funds concentrate on long-term capital gains and high future income; generally invest in more speculative issues that provide little or no current income; most of their investments are in common stocks, and possibly a few convertible bonds.
Bogle uses past rankings of funds to illustrate the difficulty in identifying common stock funds with superior performance by showing how returns tend to regress towards the mean for all mutual funds.