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Working Assets

Looking long term with multi-cap growth funds

As goofy as it may sound, not all mutual funds are growth funds--even though most of us look for growth when we invest in funds. Additionally, not all growth funds use the same investment strategies.

Take the Calamos Growth Fund (CVGRX). Around since 1990, it's got a long-term track record that's hard to beat. It's ranked No. 1 in the Multi-Cap Growth classification by Lipper for the five-and 10-year periods ending December 31, 2004, and up 18.65 percent last year--and it uses a disciplined investment strategy.

John Calamos, one of the fund's portfolio managers, points out a few things he does to manage risk in the fund's portfolio. First, he says the portfolio is highly diversified among stocks and the various sectors. In addition, the fund doesn't use cash as a risk management tool. "We don't cycle in and out of cash," says Calamos. "We keep fully invested at all times and try to manage the portfolio for the long term." Finally, this growth fund isn't into concept-type stocks. Instead, it seeks out companies that show they can generate above-average growth and cash flows over time.

With about 140 stocks in its portfolio, the Calamos Growth Fund is best suited for those who like the notion of investing in a multicap growth fund. It's not suited to those who are looking for income.

Dian Vujovich is an author, syndicated columnist and publisher of fund-investing site

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This article was originally published in the April 2005 print edition of Entrepreneur with the headline: Working Assets.

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