Growth stocks are shares of companies expected to experience above-average revenue and earnings growth, often reinvesting profits for expansion.

In India, companies such as Infosys (INFY) and Reliance Industries (RELIANCE) are considered growth stocks due to their consistent growth and leadership in their respective industries.

In the US, examples of growth stocks include technology giants like Apple (AAPL) and Amazon (AMZN), known for continuous innovation and market dominance.

Growth stocks typically have higher valuations, as investors expect future earnings to justify the premium paid for their shares.

These stocks can be volatile, as market expectations play a significant role in their performance, making them suitable for long-term investors with a higher risk tolerance.

Growth investing focuses on capital appreciation rather than dividends, as companies often reinvest profits for expansion rather than distributing them to shareholders.

Investors in growth stocks analyze various factors, including revenue growth, profit margins, market share, and industry trends, to identify companies with significant growth potential.

Growth stocks can be found in various sectors, including technology, healthcare, consumer discretionary, and e-commerce, where innovative companies thrive.

Next: Advantages of investing in Growth Stocks

Next: Advantages of investing in Growth Stocks