kasvusalkku

Kasvusalkku is a Finnish term that translates to "growth portfolio" or "growth investment portfolio." It refers to a collection of investments chosen with the primary objective of achieving capital appreciation over the long term. Unlike income-focused portfolios that prioritize regular dividends or interest payments, a kasvusalkku emphasizes assets expected to increase significantly in value over time.

The selection of assets within a kasvusalkku typically includes equities, particularly those of companies with high growth potential. This could involve technology firms, emerging market companies, or businesses operating in innovative sectors. Other assets like venture capital or private equity investments might also be considered, although these generally carry higher risk. The underlying principle is to identify undervalued or rapidly expanding businesses that are poised for substantial future growth.

Investors constructing a kasvusalkku often have a longer time horizon, as achieving significant capital gains can take several years. They are typically willing to accept higher volatility in exchange for the potential for greater returns. Risk management in a kasvusalkku is often achieved through diversification across different asset classes, industries, and geographical regions. However, the inherent nature of growth investing means that these portfolios can be more susceptible to market downturns compared to more conservative investment strategies. The performance of a kasvusalkku is primarily measured by its total return, which includes both capital gains and any reinvested income.