Growth funds takes long-term capital appreciation as its investment target, and the investment targets are mainly the stocks of small companies and some emerging industries with great appreciation potential in the market. In order to achieve the goal of maximum value-added, growth funds usually pays little dividends, but often reinvests the dividends, bonuses and profits obtained from investment to realize capital appreciation. Growth funds mainly invests in its stocks. According to the different investment risks and returns, investment funds can be divided into growth investment funds, income investment funds and balanced investment funds. Growth stock funds are the mainstream varieties in the fund market. According to the rating system of stock funds, growth funds is established relative to value funds. When defining growth funds, it is mainly divided according to the characteristics of stocks held by funds. Growth funds's stocks generally have a high performance growth record, but also have a high P/E ratio and P/B ratio.

Funds investing in growth stocks expect the long-term profit potential of the companies they invest in to exceed market expectations, which may come from product innovation, market share expansion or other reasons leading to the company's income and profit growth. In short, growth companies are considered to have a growth rate higher than the market average. Some growth funds have a wide range of investments, including many industries; Some growth funds's investment scope is relatively concentrated, such as concentrated investment in stocks of a certain industry or stocks whose value is considered undervalued. The price fluctuation in growth funds is generally greater than that of conservative income funds or money market funds, but the income is generally higher. Some growth funds also derived new types, such as capital growth funds, whose main goal is to strive for rapid growth of capital, sometimes even the maximum value-added in the short term, and generally invest in emerging industrial companies. Such funds are often highly speculative, so they fluctuate greatly.