What investment strategy might be MOST appropriate for a child’s college education if the child is currently two years old?

The choice of growth funds as the most appropriate investment strategy for a child's college education when the child is two years old is grounded in the long investment horizon available. Since the child currently has approximately 16 years until college, this time frame allows for substantial growth opportunities in the stock market.

Growth funds typically invest in companies that are expected to grow at an above-average rate compared to other companies. These funds may experience more volatility than other investment options, but they have the potential for higher returns over a long period, which aligns well with the goal of funding college education. The longer investment period provides enough time to recover from potential market downturns, allowing the investment to ride out fluctuations and benefit from compound growth.

In contrast, bond funds, while generally more stable, may not offer the aggressive growth needed to keep up with rising education costs over such a long period. Short-term savings accounts typically yield low interest that may not even keep up with inflation, making them less suitable for significant future expenses. Value funds focus on undervalued stocks but may not optimize growth in the same way as growth funds, especially in a long-term investment strategy aimed at college savings.

Considering these factors, growth funds are ideally suited for this purpose, facilitating a balance of risk