Growth Funds

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Growth Funds are special type of mutual funds, the objective of which is to achieve capital appreciation by investing in growth stocks. The rise of the Growth Funds in recent years can be attributed to the rise in value of growth stocks in the Indian mutual fund market.

The rise of the Growth Funds in recent years can be attributed to the rise in value of growth stocks in the Indian mutual fund market. The Association of the Mutual Funds of India (AMFI) and its regulatory the Securities and Exchange Board of India (SEBI) are the two main authorities that regulates and shapes the structure of this high yielding mutual funds.

The Growth Funds became popular after the tremendous growth of the Indian industries during the post reforms period. The rise of the Indian industries attracted investor's money in sectors of high growth and this in turn again propelled the growth of these Growth Funds.

Definition and features of the Growth Funds:

Growth Funds are special type of mutual funds, the objective of which is to achieve capital appreciation by investing in growth stocks. Generally, the corpus accumulated in the Growth Funds is invested in stocks of those companies, which are registering prominent earnings or revenue growth. In other words, the growth funds focus on the fastest-growing companies in the market. One of the significant features of the Growth fund is that it offers tremendous growth, when the financial market is bullish. Market trend shows that investments in these growth funds are generally made by aggressive investors.

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Last Updated 06/30/2011

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