Are growth stocks always expensive?

p>No. Growth stocks may appear expensive based on their current earnings. However, their valuations show the potential these companies hold for the future. As an investor, you need to analyse whether this growth justifies the expectations.

Can growth stocks pay dividends?

es, but rarely. Most of these companies reinvest their profits. However, some mature companies may pay dividends once they stabilise their expansion.

Are growth stocks suitable for beginners?

Beginners must understand volatility and prioritise long-term fundamentals if they invest in growth stocks. Short-term movements in price must not prompt them to make impulse decisions.

How long should one hold growth stocks?

Investors must ideally hold growth stocks over long periods. The compounding growth shows up over the years.

Can growth stocks underperform for long periods?

Yes. Market cycles and changing expectations can lead growth stocks to underperform for extended periods. You need patience and confidence as you stay invested in companies with strong fundamentals.