Growth Option
Definition
What is Growth Option?
An option focused on long-term capital appreciationAn increase in the market value of an investment. rather than regular cash distributions.
Example in practice
How This Looks in Practice
An investorA person or organisation that commits capital with the expectation of a financial return. leaves gains in an equity fundA fund that invests primarily in shares and seeks long-term capital growth. for ten years to pursue compoundingThe process by which returns earn additional returns over time. and capital growth.
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Related Terms
Accumulation Option
A fund option that retains or reinvests income so it contributes to unit-value growth.
Plans & OptionsIncome Option
A fund option designed to pay eligible income to the investor rather than retain all of it.
Plans & OptionsDividend Option
An option under which a fund may distribute declared income or gains to unitholders.
Fund Structure & RegulationCollective Investment Scheme
A regulated arrangement that pools investors' money for investment according to a common objective.