What's the difference between a growth fund and a value fund?

Growth and value describe two styles of stock a fund emphasizes. Growth funds hold companies expected to expand earnings quickly — often technology and newer firms trading at high prices relative to current profits. Value funds hold companies that look cheap relative to earnings, book value, or dividends — often established firms in banking, energy, or consumer staples. Over short stretches one style can dominate the other for years; growth led much of the 2010s, value has had strong runs at other times. Because no one reliably predicts which wins next, a total-market or S&P 500 index fund already holds both styles in market proportion, sparing you the bet. Tilting toward one is optional and increases the chance you lag the broad market for long periods. Confirm your risk comfort at wealthserene.com/assessments/investor-profile.