Capital Appreciation Fund

Capital Appreciation Fund - A mutual fund attempting to increase the asset value utilizing the investments in growth stocks. The rich investment in growth stocks increases risk associated with these types of funds. It is also call an aggressive growth fund. As its name suggests, it is a capital appreciation fund seeking to liberate value to shareholders by investing in companies with appreciating share prices. This type of investment fund is the exact opposite of an income or dividend fund, which looks closely in investing in companies that pay investors a dividend. The capital gain taxed lower than other interest income at this time.