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Strategies of a Growth Fund

Wealth Cap takes pride on being entrepreneur friendly investors and work to add value before, during and after the investment process. The main aim of growth fund, which is basically a mutual fund, is to achieve capital appreciation by investing in growth stocks. They focus on companies that are experiencing significant earnings or revenue growth, rather than companies that pay out dividends. Growth fund is a diversified portfolio of stocks that has capital appreciation as its primary goal, and thereby invests in companies that reinvest their earnings into expansion, acquisitions and/or research and development.

The hope is that these companies that are rapidly growing will continue to increase in value, thereby allowing the fund to reap the benefits of large capital gains. In general, growth funds are more volatile than other types of funds, rising more than other funds in bull markets and falling more in bear markets.

Growth fund investment is mainly for those who are on the look out for inflation -beating growth with a higher level of risk. A minimum scheduled payment of R40 per month or R500 lump sum is required. Most growth funds offer higher potential growth but usually at a higher risk.

WealthCapfund supports growth funds with the following benefits for you

* Aims to achieve maximum growth for investors

* The fund invests in the industrial, financial and resources sectors

* Funds are managed by the Trusts

* The fund aims to invest in equities only.

The main investment objective of WealthCapfund is to maximize capital appreciation. The fund pursues its objective by investing primarily in the equity securities of emerging market companies. At least 65% of the fund assets will be invested in the equity securities of emerging markets companies.

Investment Strategy

Wealth Cap invests principally in equity securities of companies that are believed to have prospects for robust and sustainable growth of revenues and earnings. The equity securities of companies are selected of any size. They may also invest in equity securities of foreign issuers through ADRs and similar investments.

Capital appreciation is a rise in the market price of an asset. It is one of two major ways for investors to profit from an investment in a company. The other is through the dividend income.

Growth funds can earn you a lot of money quickly, but their risk level is fairly high. So don't get involved with a growth fund if you are unsure of what you are doing or if you can’t afford to lose the money you invest.

Just follow the market carefully to see how your fund is doing. You can consider any advice from your manager or broker about selling. Unless you have a thorough understanding of investing and the stock market, your best bet is to hire a fund manager.

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About the Author:
Asia based independent Offshore Investment advisor.Has been involved in the financial services and financial planning business since leaving full time education in 1977.It was his intention to provide an insight in to both the mainstream products offered by the general population of financial advisors out there and also the alternative investment areas that are often overlooked or ignored. For more details please visit www.wealthcapfund.com .

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