Scroll Top

search-icon
    drop-arrow

    Growth Fund

    Introduction

    A growth mutual fund is a diversified portfolio of stock with the primary goal of capital appreciation over time, with minimal or nil payouts of dividends. The portfolio of these funds mostly has stocks of those companies that have above-average growth. These companies will go on to reinvest their revenue earnings in their acquisitions, expansion, and R&D (research and development).

    Almost all the growth funds come with the potential to provide a high potential for capital appreciation over time, which is generally at a level above-average. Hence, there is a lot of demand for growth funds in the market. They are an excellent option to invest with a long-term horizon.

    Understanding Growth Funds

    Growth funds implement the strategy of high-risk high-reward. This makes growth funds ideal options for those investors that are going to invest with a long term investment horizon. Therefore, those who are risk-averse or are nearing their retirement may not consider investing in these funds as their risk profile is not in sync with.

    One must invest with an investment horizon of at least five years. It would be best if one could stay invested for more than ten years. Growth funds generally have a higher price-to-sales and price-to-earnings folds. This will be compensated for the investors as they get above-average returns and earning from the funds.

    Mutual Funds

    Knowing the potential of growth funds, the fund managers make use of blend funds, value funds, and growth funds to frame an aggressive investment fund. These are much more volatile when compared to the categories of blend funds and value funds.

    Generally, the growth funds are often broken by market capitalisation. They are represented by large-cap, mid-cap, and small-cap categories.

    Index

    Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

    Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

    CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

    Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

    Cleartax is a product by Defmacro Software Pvt. Ltd.

    Company PolicyTerms of use

    ISO

    ISO 27001

    Data Center

    SSL

    SSL Certified Site

    128-bit encryption