Capital Appreciation Fund
A mutual fund that attempts to increase asset value primarily through investments in growth stocks. The heavy investment in growth stocks increases the risk associated with these types of funds.
Also called "aggressive growth fund". Investopedia Says:
As its name suggests, a capital appreciation fund seeks to deliver value to shareholders by investing in companies with appreciating share prices.
This type of fund is the exact opposite of an income or dividend fund, which focuses on investing in companies that pay shareholders a dividend. In addition to risk tolerance, something else to consider when analyzing these different types of funds is the fact that capital gains are usually taxed lower than interest income. Related Terms:
Aggressive Growth Fund
Appreciation
Capital Appreciation
Capital Gain
Depreciation
Dividend
Income Fund
Mutual Fund
Return on Capital Gains
Risk Tolerance |