Growth funds are structured to include a well diversified combination of common stock. Basically, three reasons may be cited. First, empirical studies of common stock have almost invariably shown their long-term total return to exceed those on bonds. Second, stock in generally conceded to be a better hedge against inflation risk than bonds. Third, many small investors may prefer to hold obligations of financial institutions as their major fixed-income securities because of their convenience and safety resulting from government insurance programs.