Whether growth stocks are suitable for you?

Growth stocks refer to shares of companies that are expected to grow at an above-average rate compared to other companies in the market. These companies typically reinvest their earnings into the business rather than paying dividends, aiming to expand operations, develop new products, or enter new markets.
Growth stocks are often associated with companies in the technology, healthcare, or consumer discretionary sectors, where innovation and market expansion can lead to substantial increases in share price over time. Investors in growth stocks primarily seek capital appreciation rather than income from dividends. Growth stocks can be volatile, and their high valuations may lead to significant price drops if the company’s growth slows or if broader market conditions change. Investors in growth stocks can potentially achieve substantial returns if the company successfully executes its growth strategies, leading to significant appreciation in share price.

Growth stocks are suitable for those investors who have surplus currently available money and have a higherpotential to earn money in future, in case the market and stocks take an adverse turn. The investors should also have the higher risk-taking aptitude.