Choosing a Portfolio: Aggressive Growth

Aggressive Model Portfolios

Like moderate model portfolios, there is a range of options within the category of ‘aggressive’: you can have moderately-aggressive, as detailed above, aggressive or very aggressive portfolios.

The goal behind aggressive portfolios is to obtain long-term growth on your capital; for this reason they are also known as “capital growth” portfolios. The value of capital growth portfolios fluctuates as they are composed mostly of equities. Some investors will add some lower-risk securities such as fixed-income securities, but for the very aggressive investor, the portfolio is almost just equities. The goal of this investor is to achieve capital growth over a long period of time.  Obviously, the more aggressive the portfolio, the higher the risk.