A
mutual fund that
invests primarily or exclusively in high-
risk, high-
return securities. They may invest in
IPOs and quickly re-
sell; they also commonly invest in
options. Very little of the income from an aggressive growth mutual fund comes from
dividends; rather, most of its
earnings come from
capital appreciation. They have a high degree of
volatility, and tend to correlate highly with
stock market performance; that is, they do well when stock markets do well and poorly otherwise. Some analysts believe that while aggressive growth mutual funds correlate in this way, they do so more strongly, meaning that their
values increase and decrease more steeply than stock markets as a whole.