Growth fund is a kind of investment scheme made for capital appreciation. Therefore, investors who are looking to increase their wealth in the long run find a growth fund as an interesting option to invest. Such kind of funds preferably invest in those assets which are designed for growth like equity shares as they are believed to rise in value over a period of time. Growth funds concentrate on capital gains instead of providing income at regular intervals.
When you invest in growth funds, you are actually buying a portfolio of equity shares that are anticipated to appreciate (Increase) in value. Usually these are stocks of companies - that are growing or expected to grow in the future. The underlying idea is that as these companies grow in the future, the price of their stocks will increase, resulting in appreciation in the value of the growth fund.
