Final answer:
A mutual fund that holds mid-cap stocks (growth) can provide long-term growth that's expected to outpace inflation.
Step-by-step explanation:
A mutual fund that holds mid-cap stocks (growth) can provide long-term growth that's expected to outpace inflation.
Mid-cap stocks refer to companies with a medium market capitalization, which typically have potential for growth. By investing in a mutual fund that holds a diversified portfolio of mid-cap stocks, you can benefit from the growth potential of these companies.
Inflation refers to the general increase in prices over time. By investing in a mutual fund that provides long-term growth, you have the potential to earn returns that outpace the rate of inflation, which helps protect the purchasing power of your investment.