Growth Fund Definition
A growth fund is an investment vehicle, typically offered by mutual fund corporations or Exchange-Traded Fund (ETF) providers, that primarily invests in equities poised for above-average earnings growth and share price appreciation. The primary objective of a growth fund is capital appreciation by channeling investments into companies projected to experience exponential growth.
Large Cap or Blue Chip Growth Funds
Large cap growth funds specialize in investing in large cap or blue chip corporations. These are entities with substantial market capitalization, boasting well-established operations and a dominant industry position. Blue chip firms are synonymous with quality and have a track record of success. While they are not strictly defined by their market cap, they are generally perceived as stable investments. Large cap or blue chip entities with promising growth trajectories are ideal for these growth funds. Such investments offer the dual advantage of stability from a well-established company and the potential for significant capital growth.
Aggressive Growth Mutual Funds
Aggressive growth mutual funds have the goal of substantial growth outcomes, but this also comes with a level of risk to investors. Many investors gravitate towards large cap or blue chip growth funds due to the proven capital appreciation history of the invested companies.
Growth Stock Mutual Fund
A growth stock mutual fund is an investment vehicle that primarily invests in equities of companies expected to experience above-average earnings growth and share price appreciation. It aims to achieve capital appreciation by focusing on a basket of businesses poised for significant growth in the foreseeable future.