Capital Growth Strategy

Capital growth strategy is pretty much exactly what it sounds like...it's a strategy based on growing capital, in this case, growing the value of a portfolio. These portfolios can vary. but usually are made up mostly of equities (sometimes, they're all equities). The idea is to make money by collecting assets that grow in value. This is opposed to strategies focused more on generating income...things like dividends or bond coupons.

Just how risky to make a portfolio is a process called asset allocation. A higher risk capital growth strategy would involve the chance for a higher rate of capital growth (investing in potential high-flying tech stocks, for instance, or maybe single-product drug developers still waiting for FDA approval), but there's a higher chance of losing money. Lower risk funds would aim for a more steady-eddy approach, focusing on more established companies with slower growth rates.

Asset allocation attempts to balance out risk based on the investors' needs and wants. The strategies are designed to fit the investor, taking into account the amount of risk the investor can take (how much they can afford to lose) and how fast they hope to see profit (should they try long-term or short-term investments).

If you have a 401k, odds are somewhere you'll see noted down if you have a low, moderate, or high risk portfolio. If you didn't choose it specifically, your employer likely did.