In order to achieve the investment goal of long-term capital growth, growth funds generally invests in companies with good reputation and long-term profitability, or companies with long-term growth prospects.
Growth funds pursues stable and sustained long-term appreciation of assets, unlike active growth funds, which sometimes pursues substantial appreciation of capital in a short period of time; However, the investment strategy of the fund is similar to that of the active growth fund, so it is sometimes difficult to distinguish it from the active growth fund.
Characteristics of growth funds:
Due to the long-term growth investment goal of the fund, the growth fund pays attention to the growth of listed companies when selecting stocks;
While diversifying risks and portfolio investment, growth investment funds also maintain a high proportion of positions in some key stocks;
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.
Organized from Baidu Encyclopedia.
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