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What is a Aggressive Growth Fund?

Aggressive Growth Fund

Aggressive Growth Fund is a mutual fund that aim at high capital gains. These funds are best suited for the investors who are willing to welcome a high risk return trade-off. Aggressive Growth Funds tend to produce exceptionally good outcomes at the time of economic upswings while on the other hand, during economic downturns these can produce very bad results. Aggressive Growth Funds are amplified growth oriented genre of the investment strategy.

How to know if a fund is an Aggressive Growth Fund?

A number of Aggressive Growth Funds carry the terms like strategic equity, capital opportunity, capital appreciation, aggressive growth and so on. But this is not always the case. One can look at the mutual fund sites in order to make sure that a particular mutual fund is an Aggressive Growth Fund.

An investor should be careful with the mutual funds that are tagged as aggressive funds. There is a difference between Aggressive Growth Funds as a category and as objective. The objective is a strategy of investment while category is the label for fund’s reference.

One of the best ways to know if you have an Aggressive Growth Fund is to ascertain its movement as compared to the overall stock market. This movement i.e. The ups and downs is known as the ‘beta’ of the funds.

Choose wisely, invest well!

1 COMMENT

Ameena K March 20, 2016 at 5:22 am

This is a very nice basic tutorial. I understand that Aggressive Growth Fund is a type of mutual fund that focuses on high capital gains in a short interval. These funds can be recommended for the investors who are willing to take a bit of risk and expect the risk returns as well.