| 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 with usually a lot of share price volatility. These funds are only for non risk-adverse investors willing to accept a high risk-return trade-off. |
|
 Aggressive growth funds have large betas, which means they have a large positive correlation with the stock market. In times of economic upswings, they tend to preform very well and in times of economic downturns, they tend to do very poorly. 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.
Also commonly referred to as a capital appreciation fund or maximum capital gains fund. |
|
 Do Focused Funds Provide a Better Outlook? - Should you diversify or focus? Explore which mutual-fund strategy will work best for you. Watch Out For The Mutual Fund Metamorphosis - Even if it emerges from old grey cocoons as a beautiful butterfly … but does anything really change? Maintaining Your Mutual Fund Equilibrium - Like a tune-up for your car, mutual-fund rebalancing should minimize trouble down the road. Should You Follow Your Fund Manager? - If he or she has left, you need to re-evaluate a big factor affecting whether the fund is still suitable for you. Managing a Portfolio of Mutual Funds - Wing it or re-balance? Discover some common strategies to devise a plan and maintain your holdings to relect that plan. |
|
Related Terms
 |