Growth Fund

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.

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.

Investment dictionary. . 2012.

Look at other dictionaries:

  • growth fund — see fund 2 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • growth fund — growth′ fund n. bus a mutual fund that invests primarily in growth stocks • Etymology: 1965–70 …   From formal English to slang

  • growth fund — A mutual fund that invests primarily in stocks with a history of and future potential for capital gains. Bloomberg Financial Dictionary * * * growth fund growth fund ➔ fund1 * * * growth fund UK US noun [C] (also growth share fund) FINANCE, STOCK …   Financial and business terms

  • growth fund — a mutual fund that invests primarily in growth stocks. [1965 70] * * * growth fund, a mutual fund investment company whose stated goal is growth or appreciation in capital value. * * * n. a mutual fund that invests primarily in stocks that are… …   Useful english dictionary

  • growth fund — a mutual fund that invests primarily in growth stocks. [1965 70] * * * …   Universalium

  • growth fund — / grəυθ fʌnd/ noun a fund which aims at providing capital growth rather than income …   Dictionary of banking and finance

  • Growth Fund — Fonds (fɔ̃ː, fr.), Fund (fʌnd, en.) steht für: Investmentfonds, eine Geldsammelstelle für Kapitalanleger Rentenfonds; Investmentfonds, der in festverzinsliche Wertpapiere investiert Geschlossener Fonds, eine Geldsammelstelle für Kapitalanleger… …   Deutsch Wikipedia

  • growth fund — A managed fund holding assets that are expected to grow in value and provide capital gains. In general, these funds are supposed to provide higher returns but with greater risks …   Big dictionary of business and management

  • Aggressive Growth Fund — A mutual fund that attempts to achieve the highest capital gains. Investments held in these funds are companies that demonstrate high growth potential, usually accompanied by a lot of share price volatility. These funds are only for non risk… …   Investment dictionary

  • aggressive growth fund — UK US noun [C] (also performance fund) FINANCE ► a type of fund (= investment in a range of shares, bonds, etc.) that is designed to earn higher than usual profits but that involves more than usual risk: »Aggressive growth funds are only for non… …   Financial and business terms