Primecap Fund Question

[LuckyRobin]

What is a Primecap Fund? In looking over DH's 401K statement, that is one of the funds we are investing in. It isn't doing very well compared to others this year though it is still eeking out some market gains. Not much though. Historically it has the highest average yield, so I don't really think we should mess with it. But can someone tell me what it is?

Oh, and what is an extended market fund? Cause it is doing great right now.

I understand everything else that we are invested in but am confused on these two if someone could help explain, using little words, please.

[kv968]

Re: Primecap Fund Question

Primecap Fund is a mutual fund company but only offer three funds: Growth, Aggressive Growth and Stock Fund. They also manage the now closed Primecap fund for Vanguard. Here's their website:

http://www.odysseyfunds.com/

An extended market fund is a fund that invests in mid- and small-cap companies. It's a good addition to a large-cap or S&P 500 fund because it will give you more exposure to smaller companies than either of those will. It's usually more volatile than a large-cap fund but the returns can be greater. Although I wouldn't recommend holding just an extended fund without a large-cap one also.

[LuckyRobin]

Re: Primecap Fund Question

Thank you. It has 4 different types of funds that we are invested in, the extended market fund only has 10% of our 401K invested in it.