Growth fund

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Growth fund

A mutual fund that invests primarily in stocks with a history of and future potential for capital gains.

Growth Fund

A portfolio or mutual fund in which the primary goal is capital appreciation of the securities represented therein. That is, the investor or shareholder does not expect dividends and most returns on investments come in higher share prices. This involves investing in companies with higher risk than other portfolios. For example, a growth fund will likely invest in a promising start-up with a great outlook instead of a blue-chip company with a reliable, but not exciting, outlook. In addition to risk, a growth fund requires a relatively long time horizon, as start-ups and similar companies often take time to appreciate. See also: Plow back, Buy low, sell high, Income fund, Growth and income fund.

growth fund

An investment company whose major objective is long-term capital growth. Growth funds offer substantial potential gains over time but vary significantly in price during bull and bear markets. This type of fund is most appropriate for someone who will not need to withdraw funds in the near future.

Growth fund.

A growth fund seeks to provide its shareholders with long-term capital appreciation.

Growth funds seek to achieve that objective by investing in growth stocks -- companies that reinvest earnings to build their business through expansion, acquisition, or research and development.

Growth funds, which may focus on companies of the same size -- say all small-caps -- or include companies of different sizes in their portfolios, tend to be more volatile than funds with more conservative goals, such as providing regular if modest income.

Not surprisingly, the greater the potential for profit that a growth fund may provide comes with the increased risk of losing capital.

References in periodicals archive ?
1 ranking out of 168 Lipper growth funds for the 10-year period ended March 31, 2000, and was ranked No.
While a handful of growth funds may have performed as well, portfolio managers Frank Mastrapasqua and Tad Trantum believe they expose shareholders to much less risk by using a proprietary buy/sell strategy that doesn't fit the typical growth-fund mold.
1 as the Tax-Managed Growth and Tax-Managed Emerging Growth funds that it offers to new investors.
John Hancock Funds announced that it has introduced the John Hancock Multi Cap Growth Fund, effective today.
According to the Investment Company Institute, sales for growth funds have led all equity fund categories in recent months.
Top 10 holdings in the Winslow Green Growth Fund as of March 31, 2003 included: Atherogenics (Ticker symbol: AGIX), Polymedica (PLMD), Surmodics (SRDX), Thoratec (THOR), Sonic Solutions (SNIC), Conceptus (CPTS), Dot Hill (HIL), United Natural Foods (UNFI), Whole Foods Market (WFMI) and Friedman Billings (FBR).
Touchstone Investments announced today the addition of the Touchstone Small Cap Growth Fund to its family of 18 mutual funds.
Investors are more conservative and risk averse and the appeal of aggressive growth funds has been substantially diminished," he said.
The Preferred Large Cap Growth Fund is managed by Kathleen McCarragher, executive vice president of Jennison.
investment advisers to Citizens Funds, a leading provider of socially responsible mutual funds, today announced that the Citizens Small Cap Core Growth Fund performed in the top 10% of its category for the three-month period ending on 10/10/01, according to Morningstar, an independent provider of investment portfolio information.
Using ongoing returns that are now largely generated by the reservation's natural gas, and other mineral assets, the financial plan - formally adopted in 1999 - has established two major funds: a large, prudently managed permanent fund for core government operations, including considerable annual financial benefits for tribal members, and an aggressively invested growth fund to expand tribal wealth above current superior levels over the long-term.
Characteristically, small-company growth funds are volatile and speculative, risking above average losses in order to achieve the highest possible capital gains.

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