What is aggressive fund?
What Is an Aggressive Growth Fund? An aggressive growth fund is a mutual fund that seeks capital gains by investing in the shares of growth company stocks. Investments held in these funds are companies that demonstrate high growth potential, but also carry greater risk.
Financial professionals usually don't recommend aggressive investing for anything but a small portion of a nest egg. And regardless of an investor's age, their risk tolerance will determine if they become an aggressive investor.
- Meeder Dynamic Allocation Fund.
- JPMorgan Investor Growth Fund.
- TIAA-CREF Lifestyle Aggressive Gr Fund.
- Franklin Mutual Shares Fund.
- North Square Multi Strategy Fd.
- Gabelli Focused Growth and Inc Fd.
- E-Valuator Agrsv Growth(85%-99%)RMS Fund.
Understanding Aggressive Investment Strategy
For example, Portfolio A which has an asset allocation of 75% equities, 15% fixed income, and 10% commodities would be considered quite aggressive, since 85% of the portfolio is weighted to equities and commodities.
While being more aggressive can make a lot of sense if you have a long time until retirement, it can really sink you financially if you need the money in less than five years. To reduce risk, investors can add more bond funds to their portfolio or even hold some CDs.
Key Takeaways. If you're in your 30s, you have 30 or more years to profit from the investment markets before you are likely to retire. If you can handle the volatility of stock prices, now's the time to invest aggressively.
| Portfolio type | Average return (1926-2021) | Single-year worst return |
|---|---|---|
| 100% bonds (conservative) | 6.3% | -8.1% |
| 50% bonds; 50% stocks (balanced) | 9.3% | -22.5% |
| 100% stocks (aggressive) | 12.3% | -43.1% |
| Ticker | Name | 5-year return (%) |
|---|---|---|
| PBFDX | Payson Total Return | 16.30% |
| SSAQX | State Street US Core Equity Fund | 16.20% |
| CORRX | Columbia Contrarian Core Adv | 15.89% |
| FGRTX | Fidelity Mega Cap Stock | 15.73% |
As a result, these funds are actively managed to achieve above-average returns when markets are rising. These stocks, however, are also quite a bit riskier than other stocks and so these funds may underperform in down markets and experience greater volatility overall.
- Fixed Deposits (FD)
- Public Provident Fund (PPF)
- ABSLI Fixed Maturity Plan.
- Unit Linked Insurance Plan (ULIP)
- Post Office Monthly Income Scheme (POMIS)
- Senior Citizen Savings Scheme (SCSS)
- Sukanya Samriddhi Yojana Scheme (SSY)
- National Pension System (NPS)
What stocks are considered aggressive?
An aggressive stock is a higher-risk investment that can potentially produce higher returns than more conservative stocks, but also has equal potential for bigger losses. Examples of aggressive stocks would include junior mining stocks, smaller technology stocks, and penny stocks.
Are you an aggressive investor? Your priority is to maximize the growth of your capital. You are willing to accept significant price fluctuations for higher potential returns, and you are able to take on possible losses. You have a long-term investment horizon and you are generally not concerned with liquidity.
- High-yield savings accounts.
- Certificates of deposit (CDs)
- Bonds.
- Funds.
- Stocks.
- Alternative investments and cryptocurrencies.
- Real estate.
By age 50, you would be considered on track if you have three to six times your preretirement gross income saved. And by age 60, you should have 5.5 to 11 times your salary saved in order to be considered on track for retirement.
At age 60–69, consider a moderate portfolio (60% stock, 35% bonds, 5% cash/cash investments); 70–79, moderately conservative (40% stock, 50% bonds, 10% cash/cash investments); 80 and above, conservative (20% stock, 50% bonds, 30% cash/cash investments).
If you are five or more years away from retirement, you should invest aggressively in the funds available in your 401(k) plan. This means allocating at least 70% to 80% to stocks. This is the biggest stumbling block the average investor is unable to overcome. Most sell out of risky investments when markets crash.
$3,000 X 12 months = $36,000 per year. $36,000 / 6% dividend yield = $600,000. On the other hand, if you're more risk-averse and prefer a portfolio yielding 2%, you'd need to invest $1.8 million to reach the $3,000 per month target: $3,000 X 12 months = $36,000 per year.
The truth is that most investors won't have the money to generate $1,000 per month in dividends; not at first, anyway. Even if you find a market-beating series of investments that average 3% annual yield, you would still need $400,000 in up-front capital to hit your targets. And that's okay.
Allocating a portion of that $100,000 into quality stocks with proper risk management in place, along with understanding how to build a quality dividend portfolio, can certainly help a retiree. “Be careful, though,” Penna says. “Allocate no more than 60% of that $100,000 into equities to reduce investment risk.
What is the 5% Rule of INvesting? This is a rule that aims to aid diversification in an investment portfolio. It states that one should not hold more than 5% of the total value of the portfolio in a single security.
Which Vanguard fund is most aggressive?
Best Vanguard Funds for Aggressive Investors: Vanguard Explorer (VEXPX) Click to Enlarge If you want to turn up the growth potential and you want to go all-the-way aggressive, look no further than Vanguard Explorer (MUTF:VEXPX).
As you reach your 50s, consider allocating 60% of your portfolio to stocks and 40% to bonds. Adjust those numbers according to your risk tolerance. If risk makes you nervous, decrease the stock percentage and increase the bond percentage.
What were the top-performing funds? Top of the list by some margin was the JP Morgan Emerging Europe, Middle East & Africa investment trust, with a one-year return of almost 50%. The Amundi Semiconductor ETF comfortably took second place with a one-year return of 43%, well ahead of the iShares Poland ETF at 35%.
Among 2023′s best-performing funds: Baron Fifth Avenue Growth BFTIX, up 57.9%, and Fidelity Blue Chip Growth ETF FBCG, up 57.2%. Gains in both funds were fueled by the massive rally in Nvidia NVDA, which surged 230% this year. Meanwhile, value funds—especially small value—flipped to worst from best.
Best performing funds
The best performing Elite Rated fund in 2023 has been T. Rowe Price US Large Cap Growth Equity, which has returned 37.1%*.
