Definition of Growth Fund

What is a "growth fund"? What is the definition of the term "growth fund"?

In order to understand what a "growth fund" is, we first need to understand what a "growth stock" is.

A growth stock is a company that seeks to increase its value by plowing the majority of their earnings operation. This would be done through expansion, research and development, etc.

Definition of Growth Fund - Finance DictionaryFor instance, a great example of a growth stock is pours a great deal of money into expansion and research and development and product development and acquisitions. is seeking to increase their value by investing heavily in itself.

On the other hand, a company that is not a "growth stock" may seek to disperse earnings through dividends. A company like this would quality as an "income stock".

As you can probably guess, a "growth fund" is a fund that invests in growth stocks.

Investing in a growth fund carries a higher amount of risk compared to investing in say, a bond fund or an income fund. On the other hand, the potential rewards are greater.

-- Articles That Mention Growth Fund: