growth fund
Definition
A mutual fund whose aim is to achieve capital appreciation by investing in growth stocks. They focus on companies that are experiencing significant earnings or revenue growth, rather than companies that pay outdividends. The hope is that these rapidly growing companies will continue to increase in value, thereby allowing the fund to reap the benefits of large capital gains. In general, growth funds are more volatile than other types of funds, rising more than other funds in bull markets and falling more in bear markets.
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Related Terms
aggressive growth fund, balanced fund, crossover fund, capital appreciation fund, value fund
'growth fund
' appears in the definitions of these other terms on BusinessDictionary.com
growth mutual fund
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