What is a capital appreciation fund?

Capital appreciation, also known as capital gains, refers to the increase of an investment's value. A capital appreciation fund is a fund that attempts to increase asset value primarily through investments in high-growth and value stocks. These funds may also be called aggressive growth funds, capital opportunity funds, or capital gain funds.

Are capital appreciation funds a good investment?

Capital appreciation funds may generally have higher risk characteristics than passive index investments and standard value stock funds. They offer the potential for above-average market returns with the benefit of diversification through active management. This gives investors exposure to a wide range of equity investments.

How does the Fund seek long-term capital appreciation?

The Fund seeks long-term capital appreciation by investing primarily in the common stocks of established U.S. companies. Common stocks typically constitute at least half of total assets. The remaining assets are invested in other securities, including convertible securities, corporate and government debt.