Who Should Invest in Aggressive Funds?
These funds are best suited for investors seeking maximum financial returns without the risk level of other equity funds. The risk associated with aggressive growth mutual funds is quite significant. While the portfolio includes debt instruments, making these funds less risky when compared to other equity funds, they are nevertheless considered high-risk high-return funds. Aggressive growth funds invest in firms that have strong growth prospects. This is why these funds outperform regular growth funds. Investors with a high-risk, high-gain appetite who desire to grow their portfolios through large capital gains can participate in these sorts of funds.
1. Long term investors: Investing in such funds might be an excellent alternative for people who aim to stay invested for a long period of time (usually five years) because these funds are likely to generate substantial returns over a longer period of time.
2. Investors with High Risk Appetite: Though these funds strive for consistent income and long-term wealth growth, they hold a hybrid portfolio, which means you are also vulnerable to hazardous equities. For their stability, aggressive funds prioritise equity and equity-related securities, with lesser percentages in debt. As a result, these funds can meet the investing objectives of risk-taking investors.