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Meaning / Definition of

Growth Rate

Categories: Accounting, Business and Management, Economics,

A growth rate measures the percentage increase in the value of a variety of markets, companies, or operations. For example, a stock research firm typically tracks the rate at which a company's sales and earnings have grown as one of the factors in evaluating whether to recommend that investors purchase, hold, or sell its shares. Similarly, the rate at which the gross domestic product grows is a measure of the strength of the US economy.If you want to compare the vigor of entities or elements of different sizes, it's more accurate to look at growth rate than it is to look at the actual numerical change in value. For example, an emerging market might be growing at a much faster rate than a developed one even though the size of those economies is vastly different.

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Definition / Meaning of

Stable Value Fund

Categories: Mutual Funds, Retirement and Pension,

1. An investment option typically offered in retirement plans by employers or IRAs that are composed of guaranteed investment contracts, fixed-income funds, or capital-preservation funds. This is a popular investment vehicle for individuals nearing retirement because of stable interest and principle payments on these contracts. The returns from a stable value fund are secure, but can be small compared to other investments. A stable value fund should not be the only investment vehicle in the portfolio of an individual who has a long time until retirement. 2. A type of mutual fund that is regulated by the Department of Labor instead of the securities and exchange commission, which typically oversees mutual funds. Stable value funds are similar to bond funds, but they have insurance against principal losses. Money invested in stable value fund is combined with other cash infusion and used to purchase secure contracts from banks or insurance companies. These contracts include a guaranteed regular rate of return over the course of the contract.

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