Definition of ‘Aggressive Investment Strategy’

 

A method of portfolio management and asset allocation that attempts to achieve maximum return. An aggressive investment strategy attempts to grow an investment at an above-average rate compared to its industry or the overall market, but usually take on additional risk.

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Investopedia explains ‘Aggressive Investment Strategy’

Because their aim is capital growth, aggressive investors place a higher percentage of their assets in equities rather than in safer debt securities. As such, aggressive investors build portfolios that bear a fairly high amount of risk. But before assuming this strategy, an investor should evaluate his or risk tolerance – making sure it’s high – and be sure that he or she has quite a few years before needing the invested funds.

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