Growth Stocks and Mutual Funds: How to Find and Buy Them

Buy growth stocks early in the company’s rise to greatness. Watch revenue and earnings rise. Reap those big returns. Then practice what you’ve learned with our free stock market simulation.

Best Growth Stocks to Invest In

Here are some of the best growth stocks to invest in according to Insider Monkey.

SymbolCompany
FBMeta Platforms Inc.
TWLOTwilio Inc.
SMARSmartsheet Inc.
NETCloudflare Inc.
DOCUDocuSign Inc.

Top Growth Mutual Funds to Invest In

Check out some popular growth funds according to Morningstar.

SymbolCompany
AMCPXAmerican Funds AMCAP Fund Class A
FLCNXFidelity Contrafund K6
LGRNXLoomis Sayles Growth Fund Class N
PJFZXPGIM Jennison Growth Fund-Class Z
POGRXPRIMECAP Odyssey Growth Fund

What are Growth Stocks?

If you possess stocks in a successful company whose earnings, relative to the market, are expected to continue growing at an above-average rate, you’ve got yourself some growth stocks. Rather than yielding a super high income, growth stocks tend to increase in capital value. There’s a lot of hype surrounding these special (and pricey!) stocks; and it’s for good reason. They typically have impressively high price-to-earnings ratios. In most cases, the company would prefer to reinvest retained earnings in capital projects, so it’s not typically common for growth stocks to pay dividends. Instead, growth investors tend to receive returns from future capital appreciation. The return makes it worthwhile, but be prepared to pay top dollar to get involved in the growth game.

Philip Fisher, a pioneer in growth investing, wrote a book in which he spends an entire chapter urging readers to purchase shares of superbly managed growth companies – specifically technology companies. The pace of change in the tech sector creates an environment that’s ripe for disruptive innovations. Fun fact: Fisher started out as a value investor! His style evolved following lessons learned in the 1929 stock crash. He learnt the hard way that over time, a well-selected growth stock would substantially outperform a statistical bargain. Fisher emphasized, repeatedly throughout his career, the value of long term investing.

Other Types of Growth Investing

Growth Mutual Funds

Growth mutual funds are best characterized by their laser focus on capital appreciation. As with growth stocks, dividend payout is a rarity, so if that’s what you’re after – keep walking. You’ll also require a holding period of five to ten years; so make sure your time horizon allows for that. Portfolios would consist of companies with above-average growth in earnings – that of which would be reinvested into things like acquisitions, expansion, research and development, etc. Growth funds are for the risk-hungry. The potential is high but the risk may be higher, so make sure you have the stomach for it before investing.

Growth Dividends

Growth stock dividends are ideal for those who find the predictability of dividend-paying companies boring, but whose risk tolerance is not particularly high enough to experiment with the more volatile companies. Growth stock dividends offer an appealing combination – the security of a consistent dividend along with the excitement of an increasing stock price. Dividend growers represent a group of companies who reinvest part of their earnings in the business and distribute the rest to stockholders. Rising profits subsequently mean rising stock prices along with rising dividends.

Growth Investor Resources

Growth Investing Software

HGSI Investment Software: with its easy-to-interpret visual presentation and broad range of technical tools, this software performs comparative analyses of many groups of securities.

F.A.S.T. Graphs : Two subscription options are offered to allow for deeper and faster stock research.

Growth Investing Books

Here are some must-reads if you’re serious about getting into the growth investing game.

Benjamin Graham and the Power of Growth Stocks:Lost Growth Stock Strategies from the Father of Value Investing

Common Stocks and Uncommon Profits and Other Writings

Beating the Street

Growth Investing Indicators

Brand New Technology

Brand new technologies tend to be unproven, and growth companies spend a lot of money on development and ramping up production.

Crazy PE Ratios

Growth stocks typically have super high PE ratios . A company has worth beyond its earnings and its important to balance intrinsic value against the money the company makes. Future potential should also be priced in.

Bump in the Growth Story

It’s inevitable that all growth stories will eventually fizzle out. Like a pendulum, the market is forever swinging. When growth comes to a halt, a more realistic per share price for the stock settles in. There are two possible outcomes here: either the company is now correctly valued (and was grossly overrated in the past) or the company is currently under-valued and poised for a strong rebound in the near future.

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The Best U.S. Brokerages as of June 30, 2025

Ranking of Top U.S. Stock Brokerages Based on Fees, Features, and Sign-Up Bonuses

We are experienced users of dozens of stock trading platforms. We stay up to date on these platforms' service offerings, subscription fees, trade commissions, and welcome bonuses. The brokerages listed below are for U.S.-based investors, and are ranked in order of overall value received after taking advantage of their sign-up and/or referral offers.

Rank Brokerage Fees Features Sign-Up Bonus Read Our Review
1. robinhood-review Robinhood $0 ✅ U.S. stocks, ETFs, options, and cryptos
✅ Now 23 million users
✅ Cash mgt account and credit card
Free stock up to $200 with new account, plus up to $1,500 more in free stock from referrals Robinhood Review
2. Moomoo $0 ✅ Free Level 2 Nasdaq quotes
✅ Access to U.S. and Hong Kong markets
✅ Educational tools
60 free stocks with $5k deposit; or 25 free stocks with $2k deposit Moomoo Review
3. Interactive Brokers $0 ✅ Access 150+ global stock exchanges
✅ IBKR Lite & Pro tiers for all
✅ SmartRouting™ and deep analytics
Refer a Friend and Get $200 Interactive Brokers Review
4. Robinhood Gold $5 ✅ 4% APY on cash
✅ 3% IRA match
✅ Level II data
✅ No interest on first $1,000 of margin
 Save with Annual Fee Robinhood Gold Review
5. M1 Finance

$3 monthly

10k in assets

✅ Automated investing “Pies”
✅ Banking & low-interest loans
✅ No trading fees with scheduled trades
$75-$500 Tiered Sign-up bonus M1 Finance Review
6. Webull $0 ✅ Extended-hours trading
✅ Great charts and screeners
✅ Commission-free options trading
$10 and a 30-day complimentary subscription to Webull premium;
$200-$30,0000 Tiered Sign up bonus
Webull Review
7. Public $0 ✅ Fractional shares
✅ No payment for order flow model
✅ “Alpha” tool with earnings calls
$100-$10,000 Tiered Cash Account Transfer Bonus Public Review
8. Composer $32 a month ✅ Invest in automated strategies
✅ Build custom strategies easily
✅ IRAs
$49 per successful referral with no limit on the number of referrals Composer Review
9. Stash

Growth $3;

+ $9 Month

✅ Stock-Back® debit card rewards in fractional shares
✅ Auto-invest and budgeting tools
✅ Curated theme portfolios
$5 when you invest $5 Stash Review
10. Acorns

Bronze $3; Silver $6; Gold $12 a month

✅ Automated investing portfolios
✅ ESG curated portfolios
✅ Acorns Early Invest for Kids' Accounts
Get a $20 bonus when you start saving & investing Acorns Review
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✅ Trade U.S. stocks, ETFs, and crypto
✅ Trades with themed portfolios
$10 Crypto Sign-Up Bonus Etoro Review
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✅ Peer-to-peer payments
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Fees, features, sign-up bonuses, and referral bonuses are accurate as of May 31, 2025. All information listed above is subject to change.