What is a Capital Growth Strategy?

By Stock Research Pro • December 1st, 2009

A capital growth strategy is an aggressive investment approach in which the investor seeks maximum capital appreciation. This asset management strategy is a long-term approach that employs a risky, equities-based strategy aimed at high profits. While the percentage of equities within a capital growth strategy can vary, it is usually at least 65% with some diversification achieved through the inclusion of fixed-income securities, cash, and other assets.

Most often, a capital growth strategy investor chooses growth stocks as their primary equity investment. By focusing on small and mid-cap stocks, investors give themselves the best opportunity to beat average market returns. The strategy, however, is not a viable one for investors with shorter-term horizons due to the volatility and risk it brings.


The above information is educational and should not be interpreted as financial advice. For advice that is specific to your circumstances, you should consult a financial or tax advisor.

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