Welcome to our comprehensive guide on the “10 Best Growth and Income Mutual Funds.” Investing in mutual funds is a popular choice for individuals seeking a balance between capital appreciation and regular income. In this article, we will present a carefully curated list of mutual funds that offer both growth potential and income generation, catering to a wide range of investment goals and risk appetites.
We want to emphasize that we are independent experts committed to providing unbiased and valuable financial information to our readers. Our recommendations are based on thorough research and analysis, taking into account various factors such as historical performance, fund manager expertise, expense ratios, and risk profiles. We do not receive compensation from any mutual fund or financial institution for featuring their products. Our primary aim is to empower you, the investor, with the knowledge and insights needed to make informed investment decisions. Please conduct your own research and consult with a financial advisor before making any investment choices.
Table of Contents
Our Top Picks Growth and Income Mutual Funds
| Fund name | Ticker | Dividend Yield | Price (as of November 22, 2024) |
| Dodge & Cox Income Fund | DODIX | 4.2% | $12.57 |
| The Hartford Short Duration Fund | HSDIX | 4.42% | $9.65 |
| Vanguard Long-Term Investment-Grade Fund Investor Shares | VWESX | 4.9% | $7.71 |
Source: beatmarket.com
1. Dodge & Cox Income Fund (DODIX)
Description: Dodge & Cox Income Fund (DODIX) is a stalwart in the world of fixed-income investments. This fund primarily focuses on intermediate core-plus bonds, offering a balanced approach to income generation and capital preservation.
Price: Previous Close: $12.57 per share
Main Characteristics: With a net expense ratio of just 0.41%, DODIX provides cost-effective exposure to a $87.93 billion portfolio. It has demonstrated a consistent yield of 4.2%, which is attractive for income-seeking investors. The fund has a solid track record since its inception in 1989.
Yield: 4.2%
Rationale: We selected Dodge & Cox Income Fund (DODIX) for its exceptional long-term performance, low expense ratio, and impressive yield. This fund’s conservative approach and long-standing history make it an excellent choice for investors seeking stability and income from their investments.
**data from November 22, 2024
2. The Hartford Short Duration Fund (HSDIX)
Description: The Hartford Short Duration Fund (HSDIX) is tailored for investors seeking a short-term bond strategy. It aims to provide competitive returns while managing interest rate risk effectively.
Price: Previous Close: $9.65 per share
Main Characteristics: With a YTD return of 4.42% and a net expense ratio of 0.50%, HSDIX offers attractive returns with a focus on short-term bonds. It has a Morningstar Rating of ★★★★, indicating strong performance.
Yield: 4.42%
Rationale: The Hartford Short Duration Fund (HSDIX) stands out due to its impressive short-term performance, solid Morningstar Rating, and its role in mitigating interest rate risk. This fund is an excellent choice for investors looking for stable returns while keeping a conservative approach.
**data from November 22, 2024
3. Vanguard Long-Term Investment-Grade Fund Investor Shares (VWESX)
Description: Vanguard Long-Term Investment-Grade Fund Investor Shares (VWESX) is a long-term bond fund that aims to provide investors with exposure to investment-grade bonds, balancing income generation and potential capital appreciation over the long haul.
Price: Previous Close: $7.71 per share
Main Characteristics: This fund boasts a remarkably low net expense ratio of 0.21% and a competitive yield of 4.9%. While it has faced a YTD return of -0.12%, it offers the potential for long-term growth and income.
Yield: 4.9%
Rationale: We recommend Vanguard Long-Term Investment-Grade Fund (VWESX) for its ultra-low expense ratio, attractive yield, and potential for long-term growth. While it may have short-term fluctuations, its focus on investment-grade bonds aligns with a conservative, income-oriented strategy for the long run.
**data from November 22, 2024
Vanguard Growth Index Fund Admiral Shares (ticker: VIGAX)
as of 11/26/2024
Description:
The Vanguard Growth Index Fund Admiral Shares (VIGAX) is a standout choice for investors seeking exposure to large-cap growth stocks. This fund seeks to track the performance of the CRSP US Large Cap Growth Index, providing investors with a low-cost, diversified approach to investing in companies with strong growth potential. VIGAX offers a blend of established giants and emerging growth stocks, aiming to deliver long-term capital appreciation.
Rating:
- Morningstar Rating: VIGAX holds a prestigious ★★★★(4-star) Morningstar rating, indicating its strong historical performance compared to peers in the Large Growth category.
- Morningstar Risk Rating: While it carries a high risk rating, it aligns with the growth-oriented strategy, which may involve higher volatility.
Management:
VIGAX is managed by Vanguard, one of the most renowned names in the investment industry. Vanguard’s commitment to low-cost indexing strategies makes VIGAX an attractive choice for cost-conscious investors. With a net expense ratio of just 0.05%, it stands as one of the most cost-effective options in its category.
- Performance
as of 11/26/2024
We recommend Vanguard Growth Index Fund Admiral Shares (VIGAX) for its exceptional performance, ultra-low expense ratio, and Vanguard’s reputation for sound fund management. The fund’s focus on large-cap growth stocks aligns with a long-term growth strategy, and its impressive YTD return of 23.69% highlights its potential for capital appreciation. Investors looking to participate in the growth of established and emerging companies within the large-cap space should consider VIGAX as a strong addition to their portfolios.
- Sectors
Summary: VIGAX offers a cost-effective way to invest in large-cap growth stocks, delivering an impressive YTD return of 23.69%. With a 4-star Morningstar rating and Vanguard’s trusted management, it’s a strong choice for long-term capital growth.
Advice: Consider VIGAX if you seek growth in established and emerging companies within the large-cap segment. Its low expense ratio makes it an attractive option for cost-conscious investors. However, be aware of its above-average historical volatility (beta) and assess your risk tolerance accordingly.
Warning: While VIGAX has shown strong recent performance, past performance is not indicative of future results. Its above-average risk rating suggests potential for volatility. Diversify your portfolio and consult with a financial advisor to ensure VIGAX aligns with your overall investment strategy and risk tolerance.
iShares Russell 1000 Growth ETF (IWF)
as of 11/26/2024
Description:
The iShares Russell 1000 Growth ETF (IWF) provides investors with exposure to large-cap growth stocks in the U.S. equity market. It aims to replicate the performance of the Russell 1000 Growth Index. IWF offers a diversified portfolio of companies that are expected to have strong growth potential. It’s designed to provide investors with a cost-effective way to participate in the growth of leading U.S. companies.
Rating:
- IWF’s strong YTD daily total return of 23.95% reflects its appeal to investors seeking growth opportunities.
- With a net expense ratio of 0.19%, IWF is considered cost-effective.
- A beta of 1.13 suggests IWF has historically been slightly more volatile than the overall market.
Management:
IWF is managed by BlackRock, a global leader in asset management. The fund’s low expense ratio aligns with BlackRock’s commitment to providing cost-efficient investment options.
- Performance
Rationale for iShares Russell 1000 Growth ETF (IWF):
- Strong YTD Return: YTD return of 23.95% indicates robust performance.
- Cost-Effective: Low expense ratio at 0.19% minimizes fees.
- Diversification: Tracks Russell 1000 Growth Index for diversified growth exposure.
- Historical Volatility: Beta of 1.13 indicates slightly higher historical volatility.
- Valuation: PE ratio is 43.53.
Consider IWF’s strong performance, cost-efficiency, diversification, but also be aware of historical volatility and valuations, aligning with your risk tolerance and goals.
- Sectors
Summary: IWF offers robust YTD performance, cost-efficiency, and diversified growth exposure. However, it comes with slightly higher historical volatility and valuations.
Advice: Consider IWF for large-cap U.S. stock growth in a cost-effective manner. Assess your risk tolerance due to historical volatility.
Warning: While IWF has strong returns, past performance isn’t indicative of the future. High valuations and volatility should be considered in your investment strategy.
Calamos Growth and Income Mutual Fund (CGIIX)
as of 11/26/2024
Description:
The Calamos Growth and Income Mutual Fund (CGIIX) is an allocation fund with a focus on equities, targeting 70% to 85% allocation in this category. The fund aims to provide investors with growth and income by investing in a mix of stocks and bonds. It has a history dating back to 1988, making it a well-established choice for investors seeking a balanced approach to capital appreciation and income generation.
Rating:
- CGIIX holds a top-tier ★★★★★ (5-star) Morningstar rating, reflecting strong historical performance compared to its peers in the Allocation category.
- The high Morningstar Risk Rating suggests high volatility.
Management:
CGIIX is managed by Calamos Investments, an experienced asset management firm known for its expertise in allocation strategies. The fund’s expense ratio of 0.81% covers professional management and research services.
- Performance
CGIIX has demonstrated a solid YTD performance and offers a yield for income-seeking investors. However, its above-average expense ratio and beta should be considered in light of your investment goals and risk tolerance. Past performance does not guarantee future results, so it’s essential to assess whether CGIIX aligns with your overall investment strategy.
- Sectors
Summary: CGIIX is a well-established allocation fund aiming to deliver growth and income. Its 5-star Morningstar rating attests to its historical performance.
Advice: Consider CGIIX for a balanced approach to investment, combining equities and fixed income. Be mindful of the expense ratio and moderate risk level.
Warning: Past performance doesn’t guarantee future results. Evaluate your investment objectives and risk tolerance before considering CGIIX in your portfolio.
Capital World Growth and Income Fund (CWGIX)
as of 11/26/2024
Description:
The Capital World Growth and Income Fund (CWGIX) is a World Large-Stock Blend fund. It is designed to offer a balanced approach to capital growth and income generation by investing in a diverse portfolio of global large-cap stocks. CWGIX provides exposure to companies from around the world, aiming to achieve long-term capital appreciation and income for investors.
Rating:
- CWGIX holds ★★★ (3-star) Morningstar rating, indicating strong historical performance compared to its peers in the World Large-Stock Blend category.
- The Morningstar Risk Rating is “Average,” suggesting a relatively Average level of risk.
Management:
CWGIX is managed by Capital Research and Management Company, a reputable asset management firm known for its expertise in global investing. The fund’s net expense ratio of 0.75% covers management and operational costs.
- Performance
CWGIX has delivered a YTD return of 13.45%, making it a strong performer in the World Large-Stock Blend category. The fund maintains a relatively low expense ratio of 0.75%, benefiting investors. With a beta of 0.99, it has displayed volatility closely aligned with the market. Furthermore, CWGIX offers a competitive yield of 1.62%. These factors make it an appealing option for those seeking balanced growth and income. However, always consider your investment goals and risk tolerance before including CWGIX in your portfolio.
- Sectors
Summary: CWGIX is a well-established World Large-Stock Blend fund offering both growth and income opportunities. Its 3-star Morningstar rating and good historical performance.
Advice: Consider CWGIX for global diversification and balanced growth and income objectives. The below-average risk rating adds to its appeal.
Warning: Past performance does not guarantee future results. Evaluate your investment goals and risk tolerance before considering CWGIX for your portfolio.
TIAA-CREF Growth & Income Fund (TGIHX)
as of 11/26/2024
Description:
TIAA-CREF Growth & Income Fund (TGIHX) falls within the Large Blend category and is designed to provide a balanced approach to investment. The fund seeks capital growth and income by investing in a diversified portfolio of large-cap stocks. TGIHX aims to achieve long-term growth while offering a level of stability and income generation.
Rating:
- TGIHX holds an impressive ★★★★ (4-star) Morningstar rating, indicating strong historical performance compared to its peers in the Large Blend category.
- The Morningstar Risk Rating is “High,” suggesting a high level of risk.
Management:
TGIHX is managed by TIAA-CREF, a well-known financial services organization with expertise in retirement and investment solutions. The fund’s net expense ratio of 0.69% reflects its cost-effective approach to management
- Performance
TGIHX has excelled in the current year, boasting an impressive YTD return of 25.58%. This strong performance aligns with its cost-effective approach, as reflected in a low net expense ratio of 0.69%. TGIHX’s beta of 1.00 indicates a volatility level in line with the broader market. Furthermore, the fund offers a competitive yield of 0.92%. Despite its high holdings turnover rate of 108.00%, TGIHX provides a balanced blend of growth and income for investors. Keep in mind that past performance does not guarantee future results, so assess your investment objectives and risk tolerance before considering TGIHX in your portfolio.
- Sectors
Summary: TIAA-CREF Growth & Income Fund (TGIHX) offers a balanced approach to investing, focusing on large-cap stocks. Its 4-star Morningstar rating underscores its historical performance.
Advice: Consider TGIHX for a blend of growth and income in a cost-effective manner. Be mindful of the above-average risk rating.
Warning: Past performance does not guarantee future results. Assess your investment goals and risk tolerance before including TGIHX in your portfolio.
SPDR Portfolio S&P 500 Growth ETF (SPYG)
as of 11/26/2024
Description:
The SPDR Portfolio S&P 500 Growth ETF (SPYG) is designed to track the performance of the S&P 500 Growth Index. This ETF offers investors exposure to large-cap U.S. stocks with a focus on growth. SPYG aims to provide capital appreciation by investing in companies with the potential for strong earnings and revenue growth.
Rating:
- SPYG’s low net expense ratio of 0.04% makes it an extremely cost-effective choice for investors.
- The fund has a beta of 1.11, indicating slightly above-average historical volatility compared to the broader market.
Management:
SPYG is managed by State Street Global Advisors, a prominent asset management firm known for its exchange-traded funds (ETFs). The fund’s exceptionally low expense ratio minimizes costs for investors.
- Performance
SPYG has delivered impressive YTD performance with a 27.28% return. It reflects a low net expense ratio of 0.04%, offering cost-efficient access to growth-focused S&P 500 stocks. However, the PE ratio stands at 33.57, suggesting relatively higher valuations, and investors should assess their alignment with this risk-return profile. The yield is modest at 0.69%. Keep in mind that past performance is not a guarantee of future results, so ensure your investment goals and risk tolerance match SPYG’s characteristics before considering it for your portfolio.
- Sectors
Summary: SPDR Portfolio S&P 500 Growth ETF (SPYG) tracks the growth segment of the S&P 500 and offers investors cost-effective exposure to large-cap U.S. stocks.
Advice: Consider SPYG for a low-cost way to access growth-oriented stocks within the S&P 500. Be aware of its slightly above-average historical volatility.
Warning: Past performance is not indicative of future results. Evaluate your investment goals and risk tolerance before including SPYG in your portfolio.
10. Invesco NASDAQ 100 ETF (QQQM)
as of 11/26/2024
Description:
The Invesco NASDAQ 100 ETF (QQQM) seeks to track the performance of the NASDAQ-100 Index. This ETF provides investors with exposure to some of the largest non-financial companies listed on the NASDAQ Stock Market. QQQM aims to deliver returns that correspond to the index’s performance, offering a convenient way to invest in technology and other growth-oriented sectors.
Rating:
- QQQM boasts a low net expense ratio of 0.15%, making it a cost-effective investment choice.
- The beta of 1.18 implies that QQQM’s historical volatility has been higher compared to the market.
Management:
QQQM is managed by Invesco, a reputable global investment management firm. The fund’s low expense ratio contributes to its cost efficiency.
- Performance
QQQM has shown good YTD performance, delivering a 18.85% return. While the PE ratio is relatively high at 41.35 indicating elevated valuations, the ETF offers a modest yield of 0.68%. With a low expense ratio of 0.15%, QQQM is a cost-effective option. Its stable beta suggests less market volatility. Keep in mind that past performance doesn’t assure future results; thus, align your investment goals and risk tolerance before considering QQQM in your portfolio.
- Sectors
Summary: Invesco NASDAQ 100 ETF (QQQM) offers investors exposure to the NASDAQ-100 Index and the tech-heavy companies it comprises.
Advice: Consider QQQM for broad exposure to the technology sector with a low expense ratio. The ETF’s stable beta may appeal to investors seeking less market volatility.
Warning: While QQQM has shown strong YTD performance, past performance doesn’t guarantee future results. Evaluate your investment goals and risk tolerance when considering QQQM for your portfolio.
Invesco NASDAQ Next Gen 100 ETF (QQQJ)
as of 11/26/2024
Description:
The Invesco NASDAQ Next Gen 100 ETF (QQQJ) aims to track the performance of the NASDAQ Next Generation 100 Index. This ETF provides investors with exposure to the next generation of non-financial companies listed on the NASDAQ Stock Market. QQQJ seeks to offer returns that correspond to the index’s performance, allowing investors to access innovative and growth-oriented companies.
Rating:
- QQQJ maintains a low net expense ratio of 0.15%, making it a cost-effective investment option.
- The beta of 1.10 indicates relatively stable historical volatility compared to the market.
Management:
QQQJ is managed by Invesco, a renowned global investment management firm. The ETF’s low expense ratio adds to its appeal.
- Performance
QQQJ has shown a modest YTD return of 10.08% and maintains a moderate PE ratio of 24.46, indicating reasonable valuations. The ETF offers a yield of 0.81% and boasts a low expense ratio of 0.15%, making it a cost-effective choice. With a stable beta, QQQJ provides access to innovative companies with relatively lower market volatility. However, remember that past performance does not ensure future results, so align your investment goals and risk tolerance before considering QQQJ for your portfolio.
- Sectors
Summary: Invesco NASDAQ Next Gen 100 ETF (QQQJ) provides exposure to the NASDAQ Next Generation 100 Index, offering access to innovative companies.
Advice: Consider QQQJ for exposure to the next generation of growth-oriented firms with a low expense ratio. The ETF’s stable beta suggests relatively lower market volatility.
Warning: While QQQJ has shown modest YTD performance, past performance doesn’t guarantee future results. Assess your investment goals and risk tolerance when considering QQQJ for your portfolio.
Fidelity Blue Chip Growth Fund (FBGRX)
as of 11/26/2024
Description:
The Fidelity Blue Chip Growth Fund (FBGRX) falls under the Large Growth category and aims to achieve long-term capital growth by primarily investing in common stocks of large-cap U.S. companies. FBGRX typically focuses on firms with growth potential and is managed with the objective of outperforming the S&P 500 Index.
Rating:
- FBGRX holds a strong ★★★★★ (5-star) Morningstar rating, indicating its historical performance compared to its peers in the Large Growth category.
- The Risk Rating is “High,” highlighting the fund’s relatively higher volatility.
Management:
FBGRX is managed by Fidelity Investments, a well-known financial services company with expertise in investment management. The fund’s net expense ratio of 0.48% reflects its cost-effectiveness
- Performance
FBGRX has delivered an impressive YTD return of 28.77% with a moderate net expense ratio of 0.48%. It exhibits slightly higher historical volatility (beta of 1.28) compared to the market and does not provide significant dividend income (yield: 0.20%). The fund maintains a relatively lower holdings turnover rate of 22.00%. Keep in mind that past performance does not guarantee future results, so assess your investment goals and risk tolerance before considering FBGRX.
- Sectors
Summary: Fidelity Blue Chip Growth Fund (FBGRX) focuses on large-cap U.S. stocks with growth potential, aiming to outperform the S&P 500.
Advice: Consider FBGRX for exposure to large-cap growth stocks. Be aware of its high-risk rating and assess your risk tolerance accordingly.
Warning: Past performance does not guarantee future results. Evaluate your investment goals and risk tolerance before including FBGRX in your portfolio.
Schwab U.S. Large-Cap Growth Index Fund (SWLGX)
as of 11/28/2024
Description:
The Schwab U.S. Large-Cap Growth Index Fund (SWLGX) is categorized as a Large Growth fund and seeks to track the performance of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index. SWLGX aims to provide investors with broad exposure to large-cap U.S. growth stocks.
Rating:
- SWLGX holds an impressive ★★★★ (4-star) Morningstar rating, indicating strong historical performance relative to its peers in the Large Growth category.
- The Morningstar Risk Rating is “Above Average,” suggesting moderate risk associated with the fund.
Management:
SWLGX is managed by Charles Schwab Investment Management, a well-established financial institution. The fund boasts an exceptionally low net expense ratio of 0.03%, making it an extremely cost-effective choice.
- Performance
SWLGX has delivered a strong YTD return of 24.11% with an exceptionally low net expense ratio of 0.03%. Its beta of 1.13 indicates slightly higher historical volatility compared to the market. The fund provides a yield of 0.54% and maintains relatively lower holdings turnover. As always, past performance should be considered alongside your investment objectives and risk tolerance.
- Sectors
Summary: Schwab U.S. Large-Cap Growth Index Fund (SWLGX) offers cost-effective exposure to large-cap U.S. growth stocks.
Advice: Consider SWLGX for efficient access to this segment of the market, with a 4-star Morningstar rating. The fund’s low expense ratio adds to its appeal.
Warning: Past performance is not indicative of future results. Evaluate your investment goals and risk tolerance before including SWLGX in your portfolio.
Summary
In this article, we’ve provided insights into the top growth and income mutual funds, offering key details about their performance, expenses, and ratings. These funds provide investors with opportunities to balance growth and income in their portfolios. If you’re looking for expert financial advice or have questions about investment options, our services can provide valuable guidance tailored to your needs.
FAQ
What is a growth and income mutual funds?
A growth and income mutual fund is a type of investment fund that aims to provide investors with both capital appreciation (growth) and regular income through dividends or interest payments. These funds typically invest in a combination of growth-oriented and income-producing assets.
What is the difference between equity income and growth and income funds?
Equity income funds primarily focus on investing in dividend-paying stocks, aiming to generate income for investors. In contrast, growth and income funds seek a balance between capital growth and income, often investing in a mix of stocks, bonds, and other assets.
Is Fidelity Growth and Income fund a good investment?
The suitability of Fidelity Growth and Income Fund (or any fund) as an investment depends on individual financial goals, risk tolerance, and time horizon. It’s advisable to assess your specific needs and consult with a financial advisor to determine if it aligns with your investment objectives.
What is the difference between mutual and income funds?
Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. Income funds, on the other hand, are a category of mutual funds that primarily focus on generating income for investors through interest, dividends, or other income-producing assets.
