Stock mutual funds are generally classified as income, growth and income, or growth funds. Income funds invest in common and preferred stocks of established companies that have a history of paying above-average dividends. Growth and income funds invest in the stock of blue chip companies that combine steady growth with good dividends. Growth funds invest in common stock of companies whose earnings have grown faster than the rate of inflation or the general economy and they reinvest most of their earnings in further growth. An easy way to invest in stock mutual funds is to buy an indexed fund.