Growth funds are a form of mutual fund whose goal is to amass growth in the value of stocks. When a stock grows, it becomes more valuable and can then be sold at that price. This is in contrast to an income fund, whose goal would be to gain income from dividends or interest, such as in bonds. A diverse portfolio of stocks would be built, consisting of companies that have a tendency to appreciate in stock value. Often times, these companies are currently expanding so the prospect for growth is obvious. The problem is, with growth funds, that there might be considerable risks associated with the investing. Since a company is in expansion, there is also a high chance that they will suddenly begin to plummet, making growth funds considerably risky. Also, the stocks may take a while before significant growth is actually realized. So in addition to a capacity for risk, investors of a growth fund should also have the time to invest, sometimes as much as 10 years.