Growth Fund

Definition: A growth fund is a mutual fund that invests in a portfolio of growth stocks.  These funds are geared towards people who are looking for greater capital appreciation.  They also carry more risk than income, blend, balanced, and value funds.

TeenAnalyst Advice: Growth funds are mostly comprised of companies that are new and growing rapidly.  The younger you are, the more risk you afford to take.  However, if you're nearing retirement, you might want to consider limiting your exposure to growth funds.

Growth stocks typically do not pay dividends so these mutual funds are not good for people who are looking for income from their investments.

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