This represents another example of the risks associated with investing in
pure growth stocks.
Our first choice, Apple Inc. (AAPL), provides an example of
a pure growth stock.
Not exact matches
But
stocks are not a
pure investment in
growth; they also bring exposure to volatility, which has been exceptionally low by historical standards.
With about 48 % of holdings in
stocks with market capitalization below $ 25B and a tilt toward
growth, the fund hardly falls into a
pure large - cap blend category.
Many respondents to a July AAII survey said they were favoring dividend - paying
stocks over
pure growth or value
stocks.
Leave aside for a moment his efforts to merge the two firms when stockholders tend to prefer «
pure play» firms to conglomerates — it's interesting to look at how two «
growth companies» are facing a challenge raising funds at a time when the
stock market is near all time highs.
And so, accordingly, it tends to attract pretty dissimilar investor constituencies, who may only focus on: i) a handful of the largest caps, regardless of valuation & exposure, ii)
stocks which (may) offer cheap / alternative access to overseas
growth (a surprisingly large number of Irish companies are UK / Europe / globally focused), iii)
stocks offering domestic exposure (notably, economic
pure - plays are actually pretty rare), iv) a listed commercial & residential property sector that's only emerged in the past couple of years, and finally (& perhaps most notoriously) v) a (junior) resource
stock sector that's been decimated in the last few years.
This observed rebalancing effect also holds for the market portfolio; indexing to maintain it appropriately (e.g., the top 1,000
stocks ranked by market capitalization) will reduce its dividend - related return components, although not as significantly as it will for
pure growth portfolios.
Regarding Dividend Challengers, a significant number of companies on this list will be
stocks that are moving from
pure growth, to
growth and dividend.
The S&P
Pure Style Indices measure, select, and retain only the strongest
growth and value
stocks and weight the constituents in accordance with their style score.
Due to the index screen for 20 years of consecutively raising dividends,
stocks included in the Index have both capital
growth and dividend income characteristics, as opposed to
stocks that are
pure yield
Jeremy has an eclectic approach to investment and is certainly not a
pure Graham and Doddite with
growth stocks and deep value plays (many of which do nt work out) sitting side by side in his portfolios.
Bajaj Allianz Life Equity
Growth Fund and Bajaj Allianz
Pure Stock Fund (key large - cap equity ULIP funds) have managed to beat the benchmark index in 100 % of the rolling period observations (using 3 - year rolling returns over a 10 - year period, with monthly shift).
Fund Management Charges: Fund management charge for Equity
Growth Fund II, Accelerator Mid-Cap Fund II &
Pure Stock Fund is 1.35 % p.a,
Pure Stock Fund II is levied with 1.30 % p.a, Asset Allocation Fund II & Bluechip Equity Fund is levied with 1.25 % p.a, Bond Fund & Liquid Fund is levied with 0.95 % p.a and for Discontinued Policy Fund, it is 0.50 % p.a.