Growth funds, often called long-term growth funds, attaches great importance to the long-term growth of capital. Usually, in order to achieve the investment goal of long-term capital growth, we will choose to invest in some long-term profitable companies. What are the characteristics of growth funds? The following are the characteristics of growth funds:
1, the growth fund pays more attention to the high growth of listed companies.
Generally speaking, the listed companies that growth funds chooses to invest in will have good development prospects, and the industry profit rate is much higher than the average level of other industries. At present, the Internet, biomedicine and other industries have good market prospects, so the stocks corresponding to these industries are favored by growth funds.
2. Different from value funds that focus on stable income.
Growth funds is very different from value funds that focus on stable returns. Generally speaking, growth funds are particularly optimistic about listed companies with market prospects and growth, so they will choose higher positions in some industries they like while considering diversification of portfolio risks.
3. growth funds is a product with high risk and expected annualized income.
Compared with other funds, the risk in growth funds is relatively high. The expected annualized income of growth funds will fluctuate with the rise and fall of the market. However, some mature growth investment funds can achieve rapid growth in net value in bull market and show strong resilience in bear market.
Now, do you all know the characteristics of growth funds? After mastering these characteristics of growth funds, everyone can invest accordingly. However, when investing in growth funds, we should pay attention to whether our risk tolerance is suitable, so as to make a healthy investment.