kasvuosuudet

Kasvuosuudet, often translated as growth shares or capital growth shares, are a type of investment fund primarily focused on capital appreciation rather than income distribution. The core principle behind kasvuosuudet is that any profits generated by the fund, such as from dividends received or capital gains on sold assets, are reinvested back into the fund's portfolio. This reinvestment is intended to increase the value of the shares over time, thereby leading to capital growth for the investor.

Unlike income funds or balanced funds that may distribute a portion of their earnings to investors as dividends or interest payments, kasvuosuudet typically retain all earnings. This strategy aims to maximize the compounding effect of returns, allowing the fund to grow its asset base more rapidly. Consequently, investors in kasvuosuudet primarily benefit from an increase in the share price. They do not receive regular income from their investment.

This investment strategy is generally suitable for investors with a long-term investment horizon who are seeking to grow their capital. They are often willing to forgo immediate income in favor of the potential for higher returns through capital appreciation. However, the absence of income distribution means that investors relying on their investments for regular cash flow would not find kasvuosuudet suitable. The performance of kasvuosuudet is directly tied to the market performance of the underlying assets within the fund.