Understand Aggressive Growth Funds

The stock market and its lingo can be confusing sometimes, but it is important to know about the economy. Here is a brief tutorial on what aggressive growth funds are and what they mean for you!

Know that an aggressive growth fund is a specific type of mutual fund. Its main goal is to achieve the largest capital gains possible. Due to this, it is not as diverse as other funds that you may choose from.

Understand that aggressive growth funds are most accommodating for investors who are willing to take the higher risk to produce a bigger return on profit, but still want the safety net of a fund rather then an individual stock.

Realize that these types of growth funds are also beneficial for those who want a closer balance between mutual fund returns and stocks. However, as mentioned before, these types of mutual funds are not risk averse compared to something like an index fund.

Know that aggressive growth funds tend to produce fantastic results in good economic times, and horrible results during bad economic times like a recession.

by ehow.com