Mutual Funds and Hedge Funds

Aggressive growth funds are similar to regular growth funds, only they are more extreme. Like growth funds, aggressive growth funds target stocks of companies that are experiencing very rapid earnings or revenue growth. But aggressive growth funds tend to trade more frequently and take many more risks than regular growth funds. An aggressive growth fund might, for example, buy initial public offerings (IPOs) of stock from small companies and then resell that stock very quickly in order to generate big profits  Some aggressive growth funds may even invest in derivatives, such as options, in order to increase their gains . You should note that these funds can be quite volatile and risky investments.