Balanced Fund

Finance a la shmoop what is capital appreciation as in the sense of an

investment fund or a mutual fund you know that is like what does it mean to

have a mutual fund with a focus on capital appreciation all right people

think more, more assets all right you have capital and yes you [Woman with a vault full of money]

appreciate having that capital but you'd appreciate it more if there was more of

it like it appreciated so a capital appreciation fund is one which focuses

on just growing the assets bigger and bigger don't really care how the capital

gets grown don't necessarily need dividends don't necessarily need minimum

p/e ratios don't necessarily need balance sheet covenants on the

investments you make don't care if it's exposed to the Venezuelan oil companies [Venezuela city landscape]

or the Australian dollar in a cap app fund well you just want the dough to [Money falls into flower pot]

grow and this ethos is in contrast to other flavors of funds which for example

need to throw off cash in the form of dividends like in a growth and income

fund or interest like in a bond fund like you know it's cash people need to

live on right so those have to do a capital appreciation does not so what's

a typical investment in a capital appreciation fund well usually be

something like a mega trend tech stock that just grows or appreciates with time [Man typing on laptop]

and really doesn't throw off much if any of a dividend like Amazon, Netflix

Facebook, Google those guys so think of a capital appreciation fund is the body [Man wearing underpants in a locker room]

builder of the mutual fund world it just wants to grow everywhere