The main objective of growth funds is the revaluation of capital. If you plan to invest to meet a long-term need and can manage a significant amount of risk and volatility, a long-term capital appreciation fund may be a good option. These funds usually hold a high percentage of their assets in ordinary shares and are therefore considered to be of a risky nature. Given the higher level of risk, they offer the possibility of obtaining greater returns over time.
The term for maintaining this type of mutual fund must be five years or more. With more options, there is a need to think and do more research. It's vital to choose a broker who will help you learn more about a fund before investing your money.
