Jul 25 2010

What is an aggressive growth mutual fund?

Category: Finance

Answer:

An aggressive growth fund is a mutual fund that is primarily made up of securities with high growth rates that attempt to maximize capital appreciation. The bulk of stocks in this type of fund will often not pay dividends but rather invest their earnings into the continued growth of the company. The fund may invest in other volatile high yield securities like IPOs, options, and other under priced stocks. Aggressive growth funds may also use leverage to increase their performance. The risk-return ratio of these types of mutual funds makes them attractive to non risk averse investors.


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