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.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

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References in periodicals archive

"We'd very much encourage business managers in the region to look at the development options that the Growth Fund might also facilitate for them."

NEL PS10m is halfway to the top

Typically, growth funds, tend to be a bit more volatile than the overall market, but they also carry the potential for greater gains.

It's a family affair

Hosted by regional fund management firm NEL Fund Managers, which administers the Growth Fund, the event was designed to celebrate the positive impact on the region that the fund has had over the last four years, and to encourage attendees to put new names forward that might become part of their growing investee portfolio.

Raising a glass to toast success of finance fund; FINANCE

Mr Swales highlighted the importance of the Regional Growth Fund to businesses on Teesside and called on Mr Alexander to support a fourth round.

MP calls for more cash support

His hottest fund--up 49.7%--is the Van Wagoner Emerging Growth Fund, which features 110 holdings of fast-growing companies.

Mutual fund mania: B.E. showcases five of the hottest mutual fund managers who share their investment strategies

BE Group is responsible for all of the administration of the scheme and are accountable to the Government Regional Growth Fund for its delivery.

A unique role in the finances of North East; The Journal's Let's Grow campaign has played a unique role in North East finance. ADRIAN PEARSON looks at the regional impact

Barrie Hensby, chief executive at NEL, says: "Given the fact that there is always a bedding-in period with any fund in the first few months after launch, the fact that we've now invested over half of the Growth Fund in almost exactly half its lifespan is extremely encouraging, and also provides a strong testament to the skills and tenacity of the NEL team.

NEL Investments pass PS10m milestone

MORE than 75 representatives from the region's leading professional services firms joined local business representatives at an event to mark the second birthday of the pounds 20m Finance For Business North East Growth Fund.

Business intermediaries mark second anniversary of growth fund