What is Aggressively Managed Fund?
An aggressively managed fund is a type of investment that involves the fund being aggressively traded. For investors who want to see quick growth fast, this is usually an attractive investment option. However, this type of investment can also be risky, especially in the hands of an investor that do not have extensive experience in this kind of investment.
An aggressively managed fund can be likened to high-stakes gambling: there are high gains but this comes with big risks as well. One of the most common high-risk stocks that portfolio managers get into are initial public offerings or IPOs, a type of stock which companies offer the public for the first time (for startup companies) or large companies that are seeking to be publicly traded.
People who are looking into aggressively managed funds for the first time should tread carefully and seek the expert opinion of financial advisors before engaging in this kind of trade. They are also advised against attempting to do the trade themselves without thorough knowledge of the intricacies of stock trading.