Aggressive Growth Fund

An aggressive growth fund is a mutual fund whose investment goal is the highest possible appreciation of value. An aggressive growth fund invests in stocks of companies that show great growth potential. Such companies are often small and relatively new. As such, their stock may be quite volatile. An investor who chooses an aggressive growth fund is likely to be very tolerant of risk and not interested in receiving dividend income from the aggressive growth fund. An aggressive growth fund typically performs very well when the economy is performing well, and poorly when the economy performs poorly. An aggressive growth fund may also invest in initial public offerings, as well as options and other derivatives that can magnify gains greatly.