What is Aggressive Investment Strategy?
How Does Aggressive Investment Strategy Work?
An aggressive investment strategy weights a portfolio's composition primarily on a combination of moderate- to high-growth stocks with much smaller portions of bonds and commercial paper. This arrangement involves a higher-than-average level of risk and price volatility, which investors accept prior to implementation. Often, investors will include options as part of the portfolio in an effort to reduce some of the risk associated with this strategy.
Why Does Aggressive Investment Strategy Matter?
The high-risk/high-return nature of an aggressive investment strategy should be carefully considered by investors prior to implementation. Unless investors believe they can afford possibly significant losses and/or are very confident in their assessment of market trends, this strategy should be avoided -- particularly by the more risk-averse.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
A money crisis can occur in the blink of an eye – and most aren’t predictable. COVID-19 is a perfect example of an unforeseen circumstance that caused massive personal finance issues for...Read More →