| Different funds from various fund houses may | | | | aggressive Growth Fund is a mutual fund that |
| perform differently because, though they have | | | | attempts to achieve the highest capital gains. |
| the same aim, there style of operation and | | | | Investments held in these funds are by |
| priority levels are different. So, given a choice | | | | companies that demonstrate high growth |
| always choose a fund with a good and consistent | | | | potential. People investing in this sort of growth |
| track record. | | | | funds should be ready to accept a high risk-return |
| A Growth Fund is basically a mutual fund that is | | | | trade-off. They are also referred to as |
| made or compiled by a stock of companies in | | | | “capital appreciation fund” or "maximum |
| order to yield better dividends. They do | | | | capital gains fund". Eg : Franklin U.S opportunity |
| re-present the potential for superior growths but | | | | funds. Now the Conservative part. A conservative |
| then it is a bit risky. On a whole investors prefer | | | | growth fund is exactly the opposite of an |
| to invest in a growth fund over a general income | | | | aggressive growth fund. Here the investment is |
| fund as they offer better greater return | | | | basically targeted to a section of people who are |
| potentials. Moreover their basic aim is to strive for | | | | willing to earn on a regular basis rather then a high |
| both dividend income and capital appreciation as | | | | capital gain. It is safe and secured and is a |
| they invest in companies that are reputed for | | | | non-risky investment. |
| dividend payments and capital gains. | | | | Basically most investors prefer investing in specific |
| They are also termed as equity funds as the goal | | | | sectors such as IT (Information and Technology) |
| is to achieve long term capital growth rather then | | | | or FMCG (Fast Moving Consumer Goods).In order |
| regular income. It is always wise to invest in a | | | | to suit their needs, sector specific schemes are |
| diversified Growth Fund that not only covers a | | | | launched, to enable the investors to decide just |
| group of companies but a variety of sectors as | | | | how aggressive or conservative they want to be. |
| well as this investments enables the investor to | | | | As of today IT forms the most popular sectoral |
| bifurcate their resources hence opening them up | | | | fund, although a variety of other funds also exist. |
| to a wide range of options. Say if you are | | | | Some examples are the Birla IT Fund, Alliance |
| investing in a Growth Fund that has five stock | | | | New Millenium, and Prudential ICICI FMCG Fund. |
| options namely IT, cement, steel, pharmaceuticals | | | | These funds basicallyinvest across various |
| and FMCG (Fast Moving Consumer Goods).Now | | | | sectors, primarily focusing on the modus of |
| say two or three out of these five stocks | | | | operandi of Multi-National Companies . This makes |
| isn’t doing well enough and you are loosing | | | | it a speciality rather than a sectoral fund. |
| out on investments, still you will have another | | | | However they run a higher risk than diversified |
| couple of units left to look forward too. | | | | general equity funds, but one can expect higher |
| Growth Funds are basically categorized into two | | | | long term returns as well. |
| categories, 1) Aggressive, 2) Conservative. An | | | | |