A type of investment fund that primarily focuses on companies with stocks carrying higher volatility, aiming for the potential of achieving above-average returns. These funds emphasize companies anticipated to experience rapid earnings expansion and business growth. These growth-oriented companies often reinvest profits rather than paying dividends, making the fund’s goal centered on capital appreciation through rising stock prices. The prices of stocks in growth companies are subject to greater price fluctuations on a daily basis due to market sentiment and investor expectations. Growth funds suit investors with a higher appetite for market fluctuations and a longer investment timeline.
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