Growth mutual fund,

Definition of Growth mutual fund:

1. Equity stock (shares) fund that invests in fastest growing firms (typically growing at an average rate of 10 percent per year) with capital appreciation as its primary objective. Such funds take more risk and pay a premium for stocks with above average earnings. When a stockmarket declines, a growth funds earnings decline faster than the overall rate, and when the stockmarket rallies its earnings grow faster the overall rate.