What is a Capital Appreciation Fund?
Often referred to as an aggressive growth fund, the capital appreciation fund is an example of taking a proactive and sometimes risky approach to increasing the value of a financial portfolio. Essentially, the capital appreciation fund is a mutual fund that is geared toward inclusion of investments that have a high level of potential for rapid growth. At the same time, these investment opportunities are characterized by an elevated incidence of risk. There are a few basic guidelines to keep in mind when considering the establishment of a capital appreciation fund. First, this is an investment strategy that should be managed with the support of a fund manager of a broker. The degree of success relies heavily on immediate access to data about the current market conditions, and often involves the need to make decisions quickly. Not all investors, especially those who have careers, are in a position to move this quickly. Second, a capital appreciation fund is a viable option for many types
A mutual fund that seeks maximum capital appreciation by investing primarily in stocks. The transparency of the U.S. financial markets offers an array of indicators and allows deep insights of prevailing sentiment. You find the activities of NYSE members like specialists and floor traders, public and odd lot short sales, the Short Interest Ratio as well as the large block transactions of the institutional investors published every week. Other trading tools to perform technical analysis include trend indicators, daily advances and declines, daily new highs and lows, volume, indices, put/call ratios and other useful information like Stochastics, RSI, MACD, TICK and more. A major problem for the financial market stocks, spot forex market traders and the commodities futures trader is the fact most of the well known technical indicators appear to contradict each other at times. Countless trader books have been written on technical analysis indicators, and no matter how many more trading boo
