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Growth fund |
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Growth fundA unit or investment fund which invests in the stocks of growth companies.Since growth companies often do not pay dividends, the income of the funds which invest in them is correspondingly low. The fund's objective is to achieve high capital appreciation. However the investment risk is correspondingly greater.Also known as maximum capital gains funds or capital appreciation funds.Growth fundA mutual fund that invests primarily in stocks with a history of and future potential for capital gains.Growth fund Similar MatchesOrganic growthOrganic growthA company is said to be growing organically when it is increasing the turnover of its existing business. Contrast this with a company that is growing by acquiring other companies. Immiserizing growthImmiserizing growthEconomic growth that makes the country worse off. Bhagwati (1958) coined the term for growth that expands exports and worsens the terms of trade sufficiently that its real income falls. Johnson (1955) had shown that a market distorted by a tariff could lose from growth and had also, independently, worked out conditions for Bhagwati's result. Growth managerGrowth managerA money manager who seeks to buy stocks that typically sell at relatively high P/E ratios due to high earnings growth, with the expectation of continued high or higher earnings growth. Sustainable growth rateSustainable growth rateMaximum rate of growth a firm can sustain without increasing financial leverage. Compound Annual Growth RateCompound Annual Growth RateBest defined by example. If you invest $100 today and make 5% in the first year and reinvest ($105) and make 8% in the second year, the compound annual growth rate is 6.489%. The calculation is $100x1.05x1.08=$113.4 which is what you end up with at the end of year two. The average return is [square root(113.4/100) -1]= 0.06489 or 6.489%. Note 1. If we had three compounding periods we would take the cubic root (power of 1/3). Note 2. If we had invested at exactly 6.489 in both periods, we get $100x1.06489x1.06489=$113.4. Note 3. The example is directed to a return - but CAGR could be applied to earnings growth, GDP growth, etc. Further SuggestionsGrowth phaseGrowth accounting Exogenous growth Growth and income fund Simple compound growth method Growth Net present value of growth opportunities Internal growth rate Export led growth growth stocks growth investing Growth stock Biased growth guaranteed growth bond Normal growth firms Full Employment and Balance Growth Act of 1978(Humphrey Hawkins Act) Aggressive Growth Hedge Fund Economic growth rate Compound growth rate Endogenous growth compound annual growth rate Constant growth model Aggressive growth mutual fund Neoclassical growth model Stability and Growth Pact |
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