Growth Fund

外汇网2021-06-19 16:25:22 162

A persified portfolio of stocks that has capital appciation as its primary goal, with little or no pidend 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.

Taobiz explains Growth Fund

Most growth funds offer higher potential capital appciation 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 pidends. Investing in growth funds requires a tolerance for risk and a holding period with a time horizon of five to 10 years.

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