Growth Funds:
Growth Funds are schemes that are designed to provide capital appreciation. Primarily invest in growth-oriented assets, such as equity. Investment in growth-oriented funds requires a medium to the long-term investment horizon. Historically, Equity as an asset class has outperformed most other kinds of investments held over the long term. However, returns from Growth funds tend to be volatile over the short term since the prices of the underlying equity shares may change. Hence investors must be able to take volatility in the returns in the short term.