What it is
Aggressive investing is an investing approach that involves putting money in assets that carry a high level of risk and offer potentially high returns.
Aggressive investors prioritize growth over safety and so they can invest in assets whose values tend to go up and down a lot, like stocks and pooled funds that contain mostly stocks.
What it means for you
You can consider aggressive investing if you have a high tolerance for risk and are financially prepared for the possibility of facing steep losses.
This method can also fit experienced investors and those with longer time horizons. That’s because long-term investors have time to ride out the short-term volatility in prices and wait for possible growth.
To know if aggressive investing is for you, take a risk assessment to find out whether you’re a Conservative, Moderate, or Aggressive investor.
You should also understand the products you’ll invest in, especially if they come with elevated risks.
The opposite of this approach is conservative investing, which involves prioritizing the safety of your money over its growth potential.
