what is long term growth ltg 
long term growth ltg is an investment strategy that aims to increase the value of a portfolio over a multi year time frame understanding long term growth ltg although long term is relative to an investors time horizons and individual style generally ltg is meant to create above market returns over a period of ten years or more because of the longer time frame ltg portfolios can be more aggressive holding a larger percentage of stocks versus fixed income products such as bonds whereas an intermediate term balanced fund might have 60 stocks to 40 bonds a ltg fund might have 80 stocks and 20 bonds ltg is meant to do exactly what it says deliver portfolio growth over time the catch is that the growth can be uneven a ltg portfolio may underperform the market in the first years and then outperform later or vice versa this is a problem for investors in a ltg fund even if a fund delivers good average growth over a decade for example the performance year to year will vary therefore investors can have very different outcomes depending on when they buy into the fund and how long they hold timing investments is of course a problem facing every market participant and not just ltg fund investors long term growth ltg and value investingthe core advantage to ltg is that short term price fluctuations are not of major concern similarly many value investors focus on stocks with ltg potential searching for companies that are relatively inexpensive with strong fundamentals then they simply wait until they increase in value as the market catches on to their fundamental strength before selling individual investors often benefit from a ltg focus and that may lead them toward value investing as a strategy however ltg simply refers to the longer period over which returns are sought not a particular investment style such as value investing long term funds are just as likely to buy the market through various indexing products as they are to seek out undervalued stocks value investing in particular can be difficult for fund managers to stick to for the long term although investors in ltg funds are told to expect a decent average return over multiple years less patient investors are free to pull out unless the fund has a lock up period something that is usually found in hedge or private funds if a typical ltg fund has too many mediocre years then capital will start to leave as investors seek better market returns this can force a fund to prematurely trim holdings before the market value catches up with the intrinsic value of the stocks 