The basic aim of growth funds in equity scheme is to provide capital appreciation over the medium to long- term. Such schemes normally invest a major part of their corpus in equities in stock markets. Being invested in equities such funds have comparatively high risks.
These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences.
The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time.