If you’ve been investing in stocks for a long time, you probably understand what growth stocks are and how important they are. These stocks can be quite crucial for your portfolio and may help you gain huge returns.
If you’re a risk-prone individual looking to gain massive returns on your total investment amount, purchasing growth stocks can be the best thing to do.

But are you confused with respect to these immensely profitable stocks? Well, don’t sweat it.
No matter how experienced you are, it’s okay to be unsure at times. In fact, that’s why we’ve come up with some great options that you can consider while shortlisting growth stocks in the future. But before we look at the list, let’s see why one should invest in growth stocks.
Growth stocks help you gain higher returns
Investing in the best growth stocks ensures wealth accumulation through large-scale capital gains. But, you need to be patient. Profits through these investments can be realized only in the long term, and they are generally subject to long-term capital gains taxes. These taxes are comparatively lower than short-term taxation policy. High returns and low tax; what else does one need!
These stocks are a shield against inflation
Growth stocks help investors to generate real income on their total investments because the returns on these stocks are quite higher than the prevailing inflation rate. A higher income is directly related to the purchasing power of individuals, which again, helps in improving their standard of living.

3 best growth stocks to consider
Abbot Laboratories
This company is well known for producing popular health nutrition products, including Pedialyte, Similac, and Ensure.
Their stocks have delivered returns up to 216% from the last 5 years. An increase in the aging population, diabetic, and heart disease patients have played an important role in increasing the returns on these stocks.
Apple
Do we really need to explain why these stocks are the best? Everyone knows that Apple is one of the most valuable publicly traded companies in U.S. history. Keeping aside the physical products, Apple pay, AppleTV+, and the app store have managed to generate $16.9 billion in revenue just last quarter. Considering all this, it can be said without a doubt, that not just in the present, Apple has great potential to grow in the future too.
Nvidia
Investors have noticed that Nvidia shares appreciated by approximately 1,356% over the past five years.
It wasn’t that easy, though, and the company faced a lot of challenges before getting to this point. One major challenge was faced in the year 2018, when the stock prices dropped after a cryptocurrency crash.

Summing it up
Growth stocks are a great source of high returns, but they’re also characterized as a risky investment venture. Why risky? Because the companies may end up using aggressive business strategies to generate profits and may tend to forgo dividend payments.
But since this doesn’t happen that often, they make for a great investment option. So don’t miss out on your research, and when investing, do consider giving growth stocks a go.