Aggressive Growth Fund

A mutual fund is considered an aggressive growth fund when it takes on considerable risk to achieve higher returns. Investors in these funds understand there is larger risk as stock positions within the fund are subject to higher price volatility. The returns from these funds can be increasingly substantial compared to a more passive fund.

Another name for an aggressive growth fund is a “capital appreciation fund”. Historically speaking the best time for investors to invest in a aggressive growth fund is when the market overall is going up and the economy is growing.

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