Investing in growth stocks is a strategy that takes advantage of a company's expected growth. Growth stocks appreciate steadily over time, carry a moderate-to-high risk, and bring a moderate-to-high return.

Who offers growth stocks? Large-cap, mid-cap, and small-cap growth companies. Executives of growth companies typically put money back into the companies (for projects and expansions), rather than paying out dividends. So, sales and earnings per share increase at a rate greater than that of the entire market, making the stocks a worthwhile investment in the long run.

Two things, in particular, distinguish a quality growth stock from an inferior one:

The company's fundamentals

The time involved

Quality companies have solid fundamentals. Companies with cash flow problems, earnings issues, or management blunders are not quality investments. Typically, longer-lasting companies have more solid fundamentals than companies with a short history. A company that has been around for a long time (at least five years)--and is expected to be successful for many years to come (at least five more years)--is simply a less risky investment than a start-up firm.

For your portfolio, stick with quality: Consider large-cap growth stocks before you look at mid-cap or small-cap. And, keep your benefits in mind: a) steady growth and b) growth over a long period of time. These two benefits put together make an ideal investing situation.