The Four Mutual Fund Categories
Growth, Growth and Income, Aggressive Growth, International — here's what each of the four fund categories means, and a free tool that sorts your own funds into them.
Open the free fund categorizer →Free, no account, no email — your numbers stay in your browser.
The four categories, in plain English
A popular way to spread retirement investing — often associated with Dave Ramsey — divides your stock funds across four types, aiming for roughly a quarter in each:
- Growth — large, established U.S. companies whose earnings are growing fast (think big technology and consumer names). Higher ups and downs, strong long-term potential.
- Growth and Income — large, steady "blue-chip" U.S. companies that pay reliable dividends. The calmest of the four.
- Aggressive Growth — smaller U.S. companies (small- and mid-cap) with the most room to grow, and the biggest swings.
- International — companies based outside the U.S., for geographic diversification.
Sort your own funds automatically
Type in a mutual fund or ETF ticker and the free tool tells you which category (or mix of categories) it falls into, then lets you check whether your whole portfolio is balanced across the four. Bonds, target-date, and single-sector funds are flagged as not fitting the four stock categories.
Frequently asked questions
What are the 4 types of mutual funds to invest in?
Growth (large-cap U.S. growth), Growth and Income (large-cap value/dividend), Aggressive Growth (small- and mid-cap), and International (companies outside the U.S.). A common approach spreads investing roughly evenly across all four.
What's the difference between Growth and Aggressive Growth?
Growth means large, established U.S. companies growing quickly. Aggressive Growth means smaller companies (small- and mid-cap) with more room to grow but bigger price swings.
How much should go in each category?
A common rule of thumb is about 25% in each of the four. The free tool shows your actual mix so you can rebalance toward even.
Is the fund categorizer free?
Yes — free to use. (Live ticker lookup runs in the desktop version; the category guide and 15% planner work everywhere.)