Definition of Aggressive Growth Mutual Fund

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Aggressive Growth Mutual Fund -- Also called maximum capital gains funds or capital appreciation funds, it is a mutual fund that has shares in fast expanding companies. Such a fund is meant only for capital appreciation, as dividend income is absent or minimal. Though the size of the growing firms in which the mutual fund is interested may vary, their profit increase has been above current normal figures. An aggressive growth mutual fund is susceptible to greater changes than the stock market as a whole since the shares it holds will outpace the rise and fall of average stock in bull and bear markets. Investors in such funds must take into account the inherent volatility in the value of their investment.



About the author

Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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