Aggressive Growth Fund
A mutual fund that attempts to achieve the highest capital gains. Investments held in these funds are companies that demonstrate high growth potential, usually accompanied by a lot of share price volatility. These funds are only for non risk-averse investors willing to accept a high risk-return trade-off.
Also commonly referred to as a "capital appreciation fund" or "maximum capital gains fund". Investopedia Says:
Aggressive growth funds have large betas, which means they have a large positive correlation with the stock market. They tend to perform very well in economic upswings and very poorly in economic downturns. An aggressive growth fund may also invest in a company's IPO and then quickly turn around and re-sell the same stock to realize large profits. Some aggressive growth funds also invest in options to boost returns. Related Terms:
Beta
Capital Appreciation Fund
Growth Fund
Initial Public Offering - IPO
Mutual Fund
Option
Return
Risk
Risk Averse
Risk/Return Trade-Off |