Growth Stocks vs Value stocks
                     Growth Stocks vs Value Stocks
Your investing decisions make you cautious and others curious at the  
same time. Why cautious because you have to be very careful before 
 pouring in your money and others will go curious about how you’re  
achieving good returns as result. It’s essential to counter some  
knowledge before taking any step ahead. Investors like you have  
different styles of investing, some like to play intraday, some are into 
 SIPs, some are long-term investors, and more. Your potential to 
invest  in the stock market requires a plan including the capacity to 
take risks,  the tenure of your investment and things like this.
Various types of stocks offer returns in a discrete way depending 
upon  their nature, market cap, size of the company, background of 
the  company, the products it deals in, etc. In this article, we’ll 
discuss the  concept of growth stocks vs value stocks, their meaning, 
how they  work, and investing guide about them. Let’s begin with 
Growth Stocks.
Growth Stocks
The stocks whose profits will keep on growing in the coming times 
are  referred to as the growth stocks. Growth stocks generally have 
the  potential to leverage their returns for a period of time. The 
reason for  such growth either lies in the company’s products and/or 
services or  the company’s potential to beat its competitors and able 
to deliver  extraordinary performance against its competitors’ 
business. Investing  in growth stocks is totally a choice of the 
investors & traders and these
can be any type of company say, small-cap, mid-cap or large-
cap.
It is also said that the growth stock companies are generally the  
not-so-established ones and mostly look for expansion rather 
than
distributing dividends to their stakeholders. This is because their idea 
is  to cater for the maximum market and make space for themselves. 
The
best 3 growth stock companies in India in 2022 are-
 Bajaj Finance (CMP- ₹7076.60, 28th July 2022)
 Britannia Industries (CMP- ₹3,869.35, 28th July 2022)
 Muthoot Finance (CMP- ₹1,063.90, 28th July 2022)
Value Stocks
The value stocks are those whose market reputation is the best but 
are  traded at a lower value than the rest of the stocks. These are
well-established firms with already good market cap and investing 
in  them is most fruitful in the long run as it is backed by strong
fundamental analysis. Value stocks can be undervalued for many  
reasons like any senior official caught in some scandal, general 
violation  of policies by the company or anything.
The growth of investing in value stocks is generally mapped by the  
investors/traders as these companies give steady returns over a 
period
of time. Another point of attraction of value stocks is they mostly 
give  regular dividends to the investors but are short of margin in 
the rise in  their stock value. The 3 Best Value Stocks Companies in 
India in 2022  are-
 Sonata Software Ltd. (CMP-₹697.55, 28th July 
2022)
 Avanti Feeds Ltd. (CMP- ₹435.50, 28th July 2022)
 HCL Technologies Ltd. (CMP- ₹943.10, 28th 
July  2022)
Growth Stocks Vs Value Stocks
A quick view at the major point of differentiation in 
both  types of stocks. Here it is-
Mechanism of Growth Stocks Vs Value Stocks 
–
The concept behind the difference between growth and value equities 
 is straightforward. Value completely outweighs development. 
Investors  are responsible for determining their goals for goals-based 
investing  and selecting growth or value companies accordingly. 
Growth  companies have the potential to increase in value 
significantly but are  noticeably more volatile than value stocks. Value 
stocks, on the other  hand, are low-risk and provide consistent 
dividends, but they are  unable to meet short-term investing 
objectives.
Investing in growth stocks for the short-term and value stocks for the  
long-term is the USP of growth and value stocks respectively. Investors 
 prefer to keep value stocks for the long term since they provide them 
 with consistent returns and share price growth. You can invest in  
growth stocks for the short term and sell all of your holdings or book  
profits to meet your expectations because growth stocks typically 
don’t  pay dividends but appreciate by a significant margin.
Experts agree that diversifying among growth and value stock  
companies is the best strategy to play with. You can divide your 
funds  and designate a portion for growth stock investments and the 
 remaining half for value stock investments. By doing this, you may  
make sure that you can meet both your short-term and long-term  
financial objectives.
Which is Better To Invest? – Growth Stocks vs 
Value
Stocks?
To make the choices between the two, here are some points 
to  consider regarding which way to go.
Current Income in your Portfolio
As far as the current income is concerned, you can’t expect a 
growth  stock to give you that as the profit of these companies is 
preferred to  pour in the faster growth and expansion to garner the 
market better.  Vice-a-verse with the value stock, you can expect a 
current income in  the form of dividends from the profit potential 
of the company.
Stock Price Movement
As the price of the value stock of the company will remain stable 
and  give returns over a period of time but when it comes to the 
growth of  company stock, then the stock price movement cannot 
be traced and  with the boom or boon move, the price of the stock 
can fluctuate.
Investments to Payoff
If you want it real quick, then invest in those value stocks which you  
think will be appreciated in the least time. Otherwise, the growth 
stock  investments take time to flourish the benefits. Sometimes, you 
believe  in a growth company stock but it will give returns in the 
longer run.
Tracking Indexes
Trace the S&P 500 Growth Index & S&P 500 indexes to help you  
determine the next best growth vs. value stock to put your money in.  
The S&P Growth index chooses the stocks with the strongest price  
momentum and the best three-year growth in profits per share and  
revenue among its top 500 growth stocks whereas the S&P Value 
index  chooses the stocks based on their valuation metrics.
Something that you should know!
The S&P 500 is not just a combination of growth & value stocks but 
has  a level of bifurcation in both of them. So, the growth sector has 
mainly  two sectors namely technology & consumer discretionary 
which is 40%  in total of the S&P 500 index. On the other hand, the 
sectors like  finance, energy, consumer staples, and industry related 
make up  approximately 29% of such index.
Let’s Wrap
Investing in any of the stocks can be the best or worst decision for 
the  trader but what is important is your basis for taking such 
decisions.
Again, your risk tolerance, your investment amount, and your 
duration  of investment per se are the factors that should be 
considered before  making any investing plan.
In the pointers mentioned in the column above, you are now
well-equipped with how growth stocks vs value stocks work and how  
they gain/lose momentum in the market. None of your decision will 
be  wrong but what is crucial is that you’ll learn all the aspects of the  
concerned stock and the company whether growth or value and then  
you get your money in that.
Rest, you know, Happy 
Investing!