Growth Stocks and Growth Mutual Funds

[vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css_animation=””][vc_column][vc_column_text]Growth stock companies have demonstrated better than average gains in earnings in recent years and also are expected to continue delivering high levels of profit growth (of course there are no guarantees).
Growth Stocks or Growth Mutual Funds are relatively priced higher than the market as investors are willing to pay high price to earnings (P/E) multiples with the expectation of selling them at even higher prices as these companies are expected to continue to grow. They can potentially continue to achieve high earnings growth regardless of economic conditions. Potential downside of growth stock is that its higher price could fall quickly on any negative news about the company (e.g. earnings drop, dividend drop, bad news about its management, ..).[/vc_column_text][/vc_column][/vc_row]