Growth and Income Funds

These funds seek to provide a balance between current dividend income and
long-term growth of capital and income. The portfolios of growth and income
funds vary considerably from one fund to the next, but most are well diversified
and emphasize the stocks of large- and medium-sized companies that have
demonstrated sustainable dividend income. Growth and income funds are often
called "value" funds, since they tend to emphasize companies with
below-average price-earnings ratios and above-average dividend yields. 

Many companies with low price-earnings ratios are thought to offer good 
long-term value. In general, growth and income funds can be considered to be 
a middle ground between the equity and income funds and growth funds.