One fund may invest on mostly established "blue chip" (Companies that pay regular dividends). Another fund may invest in newer technology companies that pay no dividends but that may have more potential for growth. These are the examples of:
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A. B. C. D.C
The answer is C. Stock funds.
A mutual fund is a type of investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. Mutual funds can invest in a variety of different types of companies, including both blue chip and newer technology companies.
An index fund is a type of mutual fund that seeks to replicate the performance of a specific market index, such as the S&P 500 or the Dow Jones Industrial Average. Index funds typically invest in a broad range of blue chip companies to match the composition of the index.
A bond fund is a type of mutual fund that invests primarily in bonds, which are debt securities issued by companies, governments, or other entities.
A stock fund, on the other hand, invests primarily in stocks or shares of ownership in companies. A stock fund can focus on a variety of different types of stocks, including blue chip companies or newer technology companies that may have greater growth potential but may not pay regular dividends.
In this case, the first fund that invests in established "blue chip" companies that pay regular dividends is an example of a stock fund that focuses on more established companies with a history of stable dividends. The second fund that invests in newer technology companies that pay no dividends but may have more potential for growth is also an example of a stock fund that focuses on companies with greater growth potential, even if they do not currently pay dividends.