About Mutual Funds and their Working Stocks and bonds are common smaller investment options where the investor has to actually dedicate a significant time for the investment. The mutual fund on the other hand is an investment where the investments of several people are put together in a pot, and invested in analyzed destinations. Know how interest accrues on the bank accounts, or how high insurance covers are provided to the people in question? Simple, company, bank or financial institute appoints a fund manager who is a genius in the world of finance, mathematics and economics. The fund manager, with the help of a well-trained team invests all the money into highly secured avenues, this can include anything, stocks, gold, silver and even land. The proceeds are then partially taken by the fund provider and the remainder is given to us as coverage, returns or interest. When it comes to mutual funds, equity (stock or capital), bonds and money markets are three common destinations. In some cases the amount of profit is disclosed, and set as a target by the mutual fund institute. It must be noted that the investment for mutual funds can be done in one single shot or in installments. Within the installments also you may have fixed and variable installments. As a result of this specific mechanism, a common trend has evolved in the economy. Several times companies or destinations in which the fund manager invests, approach the manager for capital (this is not legal, in some cases and in some nations), with a proposal and need for capital. The manager then underwrites the company, and provides a capital if the company is reliable enough. Growth Mutual Funds One unique specialty of these funds are, they invest into a fast growing stocks and equities. When the company in which the growth fund is being invested shows a downward trend, the focus immediately shifts. Some really aggressive growth funds change investment destinations in a few seconds time to focus on better and better stocks. Now, when you get a growth mutual fund, the company projects two figures, one, the minimum return amount that you will get, and is promised by the company to you (legally enforceable). This amount is your principal investment plus some yield/returns. The other figure is not a promise, but is merely a prediction. The company shares the amount of returns with you on a periodic basis. This sum varies and largely depends on the economy and the funds performance, again it is just a projection, not a promise. In some cases, you can also ask the company to reinvest this return instead to taking it. These funds are thus basically high-yield mutual funds, with a proportionality high risk. There are some growth funds where you can also recommend or choose the sector and even amount for investment. In very simple words a growth fund is an indirect equity or stock investment that is done for you by a professional. Some of the best growth funds include the following:

• Rydex Dynamic NASDAQ-100 2X Strategy H
• Dynamic US Growth I
• Geneva Advisors All Cap Growth Instl
• Genworth VIT Calamos Growth Inst
• Rydex Dynamic NASDAQ-100 2X Strategy A

Some other bank and financial institute operated growth funds, include:

• Wells Fargo Advantage Growth Balanced
• J Hancock Balanced A
• State Farm Balanced
• Alpine Dynamic Balance
• Thrivent Balanced A

Now let's have a look at the pros and cons of such mutual funds. Fairly put, the pros are that you get good returns without doing much work. The income is really good, shooting out over more than 10% to 15%. The second advantage is that your interest in the fund can be sold to some other person, if you feel the need for immediate money/liquidity. The risks involved in such mutual funds are obvious, market is unpredictable, hence you have to keep your fingers crossed for success. The amount that you get as a return (the non-promised or projected part), may also go down to a zero and in contrast, the sky is the limit for the returns. The second drawback is that the high level of investment is to be done in a one-time lump sum for most of the mutual funds. In some cases you might also opt for an installed fund. However, it is fixed and high. The only drawback about these mutual funds is that you need really good market conditions, a developing economy and hefty initial investment to make hay.