A mutual fund whose purpose is to achieve the highest possible gains in capital.

Also known as 'capital appreciation fund' or 'maximum capital gains fund.' This implies that its selection of investments is not risk-averse, making it compatible with investors who are willing to accept a high-risk high-return trade-off. Corresponding to their large beta or positive correlation with the stock market, aggresive growth funds tend to perform exceptionally well during economic upswings and especially poorly during downturns. One example of an investment an aggressive growth fund is likely to make is buying IPOs of stock from small companies and then reselling it very quickly to generate big profits. Other investments include derivatives, such as options.