An aggressive growth fund is a mutual fund containing an assortment of stocks and other assets selected by a professional fund manager for their potential to deliver the highest possible growth.
While the goal of an aggressive growth fund is always to make money, the actual return on these funds can vary widely from year to year. For example, an aggressive growth fund might provide a 20 percent return one year, lose 4 percent the next and gain 8 percent the year after that. For this reason, the success of an aggressive growth fund is often judged by its five-year or 10-year performance, and these funds generally are recommended only for investors who are willing to withstand a few down years in exchange for the possibility of large returns over time.
Aggressive growth funds are among the least risky aggressive investments because they include stocks from dozens or even hundreds of different companies, usually across several different industries. This diversification means that if one stock or business sector goes down in value, the success of other assets in the fund can help to make up for any losses.