Notes to Financial Statements
(1) ORGANIZATION The NAIC Growth Fund, Inc. (the "Fund") was organized under Maryland law on April
11, 1989 as a diversified closed-end investment company under the Investment Company Act of 1940. The
Fund commenced operations on July 2, 1990.
(2) SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the significant accounting
policies followed by the Fund not otherwise set forth in the notes to financial statements:
Dividends and Distributions Dividends from the Fund's net investment income and realized net long- and short-
term capital gains will be declared and distributed at least annually. Shareholders may elect to participate in the
Dividend Reinvestment and Cash Purchase Plan (see Note 4).
Investments Investments in equity securities are stated at market value, which is determined based on quoted
market prices or dealer quotes. Pursuant to Rule 2a-7 of the Investment Company Act of 1940, the Fund utilizes
the amortized cost method to determine the carrying value of short-term debt obligations. Under this method,
investment securities are valued for both financial reporting and Federal tax purposes at amortized cost. Any
discount or premium is amortized from the date of acquisition to maturity. Investment security purchases and sales
are accounted for on a trade date basis.
Use of Estimates The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Federal Income Taxes The Fund intends to comply with the general qualification requirements of the Internal
Revenue Code applicable to regulated investment companies. The Fund intends to distribute at least 90% of its