What it is
A growth strategy is a method of investing that prioritizes investment products that give a higher chance of increasing the money you place in them.
This technique typically prioritizes buying stocks that you believe have the potential to grow relatively quickly over a certain period of time. Other assets that have a similar potential can also be considered.
A growth strategy is an alternative to income investing. This involves purchasing assets that may give you a predictable and reliable source of money, regardless of any change to their prices.
What it means for you
A growth strategy is one of many techniques that you can follow when you invest. If you do this, you’ll need to figure out which assets have the potential to increase at an acceptable rate over time.
If you’re investing for retirement, you should compare the possible returns from a growth strategy against the benefits you might get from income investing. That way, you’ll see which approach is more likely to get you to your goal.