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Glossary ยท investing

What is Growth investing?

Focus on companies expected to grow revenue and profit faster than average.

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Growth investing prioritises expansion โ€” revenue, users, market share โ€” often at the expense of current profits or dividends. Investors accept richer valuations expecting future earnings to justify them.

Growth strategies can outperform in low-rate, expansive environments and underperform when rates rise or growth expectations reset. Time horizon and stomach for drawdowns both matter.

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Frequently asked questions

Growth or value investing?

Neither wins forever. Long-term returns for the two styles are surprisingly close; the ride is very different. Many investors hold both via broad index funds.

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