The focus of growth investing is to enjoy long term capital returns not to make a regular income. The goal is to increase the value of the investment itself known as a capital gain.
In stocks and shares, for example, growth is the result of the rise in the price of the shares. When you invest in a fund or an investment trust yours and other investors cash is pooled together and managed by a fund manager who will research and make investment decisions on your behalf.
Growth investing is highly attractive to many investors because buying shares in emerging companies can provide large returns if the companies are successful. But bear in mind taking this approach comes with higher risk. Investing in individual stocks is very high risk and if a company’s share price falls you could lose some or even all of your money. T
hat’s why it’s a good idea to diversify and invest in not only a wide range of companies but other asset classes too.
If you want to learn more about investing sign up to our newsletter and subscribe to our YouTube channel.
