What is growth investing? It focuses on sectors delivering structural growth. Current forecasts show healthcare tech, especially telemedicine platforms, anticipated to grow 17% CAGR through 2027, making them attractive to aggressive equity portfolios. GARP investing gives priority to one of the popular value metrics — the price/earnings growth (PEG) ratio. Although it is categorized under value investing, this strategy follows the principles of both growth and value investing. Instead of paying dividends, these companies often reinvest their earnings back into the business to fuel future growth. This approach is especially popular in sectors like technology and healthcare, where rapid innovation and changing market demands can lead to substantial financial rewards. What is growth investing? It typically values future potential over present stability. The 2024 IMF economic outlook predicts tech adoption rates will double by 2027, boosting projected earnings for SaaS companies and related growth stock valuations.
