Growth

Stocks of quality companies that have been recording above industry average growth and are expected to continue doing so in the future are called growth stocks. Because of the company’s future growth prospect, market often assigns high value to such stocks resulting in a high PE ratio

Growth investors are primarily concerned with fast growing young companies which operate in rapidly growing industry. Investors who buy growth stocks focus on earning investment returns almost exclusively through capital appreciation resulting from increasing stock price. Growth companies usually retain cash for reinvestment purpose and do not pay dividends

Examples of growth investing strategy available on smallcase platform are:

Growth at a Fair Price

As explained above, market often assigns high valuation to growth stocks. But everything has a fair price and irrespective of the quality of the product/stock, one should never overpay. This smallcase is a collection of companies experiencing earnings growth, witnessing margin improvement and increasing return on capital, and are still available at justifiable valuations

There is also a low-cost version of this smallcase to buy and invest in regularly

Coffee Can Portfolio

This smallcase selects companies whose revenue has grown by at least 10% every year for each of the last 10 years and ROCE was at least 15% for each of the last 10 years. The strategy helps you rise above the market volatility and noise by going for a long time horizon of 10 years. Additionally, it also helps in saving transaction cost, as there is no re-balancing done once bought