Equity mutual funds offer a wide variety of choices to investors, and 'growth' option is one. With this option, equity mutual fund investors allow the asset management company to keep reinvesting the returns. This way, capital appreciation becomes much more, allowing investors to achieve their financial goals. There is understandably an investment risk as the funds collected from investors move to stocks that can go up or down in different proportions based on the market sentiment, the fundamentals of the company whose stocks are bought by mutual funds, etc. However, when selected wisely, growth funds can offer substantially higher returns over a long time.