Growth funds are mutual funds designed to invest in companies that have the potential to deliver above-average business and earnings growth. These funds primarily aim to increase the value of an investor's portfolio over time through capital appreciation. Growth-oriented companies often reinvest profits to expand operations, enter new markets, or develop new products. As a result, dividend payouts may be limited compared to income-focused investments. Growth funds can be an option for investors willing to accept higher risk in pursuit of long-term returns.
