Growth investing

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Growth investors buy stocks in companies whose sales and earnings are expected to grow substantially. They invest in the belief that if earnings are growing, so too should the share price.

Growth stocks are usually found in smaller companies that have grown significantly in the past three to five years, and are expected to continue growing for the next few years.

Long-term investment

If you expect to make a quick killing in the short term, growth investing is not for you. Growth investing is typically for the long term. It carries the expectation that growth stocks will pay dividends and capital appreciation in the future. However, if you want to invest your money safely, growth investing could be a good option as it is relatively low-risk.