Aggressive growth fund,
Definition of Aggressive growth fund:
Mutual fund (unit trust) that aims primarily at capital appreciation (instead of regular income from dividends) through investments in smaller but rapidly growing companies.
An aggressive growth fund is a mutual fund that seeks capital gains by investing in the shares of growth company stocks. Investments held in these funds are companies that demonstrate high growth potential, but also carry greater risk. As such, aggressive growth funds seek to provide above average market returns however their underlying investments are often volatile causing high share price volatility. .
Aggressive growth funds are identified in the market as offering above average returns for investors willing to take some additional investment risk. They are expected to outperform standard growth funds by investing more heavily in companies they identify with aggressive growth prospects. Aggressive growth funds invest in growth stocks with relatively more aggressive projections for revenue and earnings than the standard growth stock universe. Because aggressive growth stock funds are investing based on forward-looking assumptions and multiple growth phases, they can have higher comparable risk. These funds typically do not fall into a standard category grouping reported by mutual fund research providers. They will typically be found in the growth fund category with fund names such as: aggressive growth fund, capital appreciation fund or capital gain fund. Their main focus is to invest for superior capital gains.
How to use Aggressive growth fund in a sentence?
- These stocks, however, are also quite a bit riskier than other stocks and so these funds may underperform in down markets and experience greater volatility overall.
- As a result, these funds are actively managed to achieve above-average returns when markets are rising.
- An aggressive growth fund invests in companies that have high growth potential, including newer companies and those in hot sectors of the economy.
Meaning of Aggressive growth fund & Aggressive growth fund Definition