aggressive growth fund


A mutual fund which aims for the highest capital gains and is not risk-averse in its selection of investments. Aggressive growth funds are most suitable for investors willing to accept a high risk-return trade-off, since many of the companies which demonstrate high growth potential can also show a lot of share price volatility. Aggressive growth funds tend to have a very large positive correlation with the stock market, and so they often produce very good results during economic upswings and very bad results during economic downturns.
An aggressive growth fund might, for example, buy initial public offerings (IPOs) of stock from small companies and then resell that stock very quickly in order to generate big profits. Some aggressive growth funds may even invest in derivatives, such as options, in order to increase their gains.

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You should try to look for a good aggressive growth fund if you are ready to make a major play.

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Stan was making a huge investment in an aggressive growth fund because he wished to retire by 45 and this gave him the best shot at achieving that dream.

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The investment firm encouraged younger investors to buy in to aggressive growth funds as long as they can handle the upswings and downturns of the market.

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