Aggressive Growth Fund

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".

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.


Investment dictionary. . 2012.

Игры ⚽ Нужна курсовая?

Look at other dictionaries:

  • aggressive growth fund — UK US noun [C] (also performance fund) FINANCE ► a type of fund (= investment in a range of shares, bonds, etc.) that is designed to earn higher than usual profits but that involves more than usual risk: »Aggressive growth funds are only for non… …   Financial and business terms

  • growth fund — A mutual fund that invests primarily in stocks with a history of and future potential for capital gains. Bloomberg Financial Dictionary * * * growth fund growth fund ➔ fund1 * * * growth fund UK US noun [C] (also growth share fund) FINANCE, STOCK …   Financial and business terms

  • aggressive growth mutual fund — A mutual fund designed for maximum capital appreciation that places its money in companies with high growth rates. Bloomberg Financial Dictionary …   Financial and business terms

  • aggressive growth hedge fund — In the context of hedge funds, a style of management that focuses primarily on equities that are expected to have strong earnings growth. Bloomberg Financial Dictionary …   Financial and business terms

  • aggressive — aggressively, adv. aggressiveness, aggressivity /ag re siv i tee/, n. /euh gres iv/, adj. 1. characterized by or tending toward unprovoked offensives, attacks, invasions, or the like; militantly forward or menacing: aggressive acts against a… …   Universalium

  • performance fund — A growth oriented mutual fund investing in growth stock and performance stock with low dividends and high risk. Bloomberg Financial Dictionary * * * performance fund performance fund ➔ fund1 * * * performance fund UK US noun [C] …   Financial and business terms

  • 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 . As its name… …   Investment dictionary

  • Stock fund — A stock fund or equity fund is a fund that invests in Equities more commonly known as stocks. Such funds are typically held either in stock or cash, as opposed to Bonds, notes, or other securities. This may be a mutual fund or exchange traded… …   Wikipedia

  • Lifestyle Fund — An investment fund featuring an asset mix determined by the level of risk and return that is appropriate for an individual investor. Factors that determine this mix include an investor s age, level of risk aversion, the investment s purpose and… …   Investment dictionary

  • go-go fund — A type of mutual fund in highly aggressive growth stocks. The fund has high levels of risk and potential return. Bloomberg Financial Dictionary * * * go go fund go go fund ➔ fund1 * * * go go fund UK US noun [C] INFORMAL FINANCE, STOCK MARKET …   Financial and business terms

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”