Business Glossary

mutual fund holding stocks of rapidly growing companies. While these companies may be large or small, they all share histories of and prospects for aboveaverage profit growth. Aggressive growth funds are designed solely for capital appreciation, since they produce little or no income from dividends. This type of mutual fund is typically more volatile than the overall stock market, meaning its shares will rise far more than the average stock during bull markets and will fall much farther than the typical stock in a bear market. Investors in aggressive growth funds must realize that the value of their shares will fluctuate sharply over time. Aggressive growth funds are also called maximum capital gains funds or capital appreciation funds.