The so-called growth funds aims at long-term capital appreciation, and its investment targets are mainly small companies with great appreciation potential in the market and stocks of some emerging industries.

Growth funds are divided into positive growth and stable growth. Growth funds actively pursues long-term capital appreciation, but prefers small-scale growth enterprises in the selection of targets, with high risks and high returns. Steady growth generally does not engage in speculative activities, pursues long-term capital appreciation, and aims at stable and sustained long-term growth.

What are the characteristics of growth funds?

Stock selection pays attention to the growth of listed companies

The growth of listed companies can be shown as the industry in which listed companies are located has good development prospects, belonging to the sunrise industry, and the profit rate of the industry is much higher than the average level of other industries. The industry enjoys fiscal and tax incentives or is tilted by national policies in other aspects. It can also be manifested in the prominent market position of listed companies' main business, or because of asset reorganization such as mergers and acquisitions, the fundamentals of enterprises have undergone major changes and the operating conditions of enterprises have been greatly improved, thus realizing the rapid growth of listed companies.

Holding shares is relatively concentrated.

While diversifying risks and portfolio investment, growth investment funds also maintain a high proportion of positions in some key stocks.

Polarization of income fluctuation

Theoretically speaking, growth investment funds not only get higher returns, but also take higher risks. Generally speaking, with the rise and fall of the market, the income of growth investment funds fluctuates greatly. From the change of unit net value, the net value of some growth investment funds which have been established for a short time has changed greatly, but those growth investment funds with "excellent old brands" can achieve rapid growth in net value in strength and show strong resilience in weakness.