Growth Fund

A diversified portfolio of stocks that has capital appreciation as its primary goal, and thereby invests in companies that reinvest their earnings into expansion, acquisitions, and/or research and development.


Most growth funds offer higher potential growth but usually at a higher risk.



Mutual Fund Basics Tutorial - Learn about the basics--and the pitfalls!--of investing in mutual funds.
Related Terms

Capital Appreciation

Diversified Common Stock Fund

Mutual Fund

Risk/Return Tradeoff

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