Growth Fund
A diversified portfolio of stocks that has capital appreciation as its primary goal, with little or no dividend payouts. Portfolio companies would mainly consist of companies with above-average growth in earnings that reinvest their earnings into expansion, acquisitions, and/or research and development. Investopedia Says:
Most growth funds offer higher potential capital appreciation but usually at above-average risk. Growth funds are more volatile than funds in the value and blend categories. The companies in a growth fund portfolio are in an expansion phase and they are not expected to pay dividends. Investing in growth funds requires a tolerance for risk and a holding period with a time horizon of five to 10 years. Related Terms:
Capital Appreciation
Conservative Growth
Diversified Common Stock Fund
Fund Category
Go Go Fund
International Equity Stylebox
Mutual Fund
No-Load Fund
Risk-Return Tradeoff
Turnover Ratio |