DEFINITION of 'Capital Growth Strategy'
An asset allocation strategy that seeks to maximize capital appreciation, or the increase in value of a portfolio or asset over the long term.
BREAKING DOWN 'Capital Growth Strategy'
Portfolios with the goal of capital growth consist mainly of equities. The exact proportion of equities to the total portfolio will vary according to the individual investor's investment horizon, financial constraints, investment goals and risk tolerance.
In general, a capital growth portfolio will contain approximately 6570% equities, 2025% fixedincome securities and the remainder in cash or money market securities. While seeking high returns, this mixture still somewhat protects the investor against a severe loss in portfolio value if the higherrisk equity portion of the portfolio takes a plunge.
Note that an aggressive portfolio strategy also aims to maximize capital growth, but of the total portfolio value, these strategies are of considerably higher risk; sometimes consisting entirely of equities!

Strategic Asset Allocation
A portfolio strategy that involves setting target allocations ... 
Conservative Growth
An investment strategy that aims to grow invested capital over ... 
Growth Fund
A diversified portfolio of stocks that has capital appreciation ... 
100% Equities Strategy
An investment strategy for an individual portfolio or pooled ... 
Capital Appreciation
A rise in the value of an asset based on a rise in market price. ... 
Risk Parity
A portfolio allocation strategy based on targeting risk levels ...

Investing Basics
Achieving Optimal Asset Allocation
Minimizing risk while maximizing return is any investor's prime goal. The right mix of securities is the key to achieving your optimal asset allocation. 
Options & Futures
Investing 101: Portfolios And Diversification
It's good to clarify how securities are different from each other, but it's even more important to understand how their different characteristics can work together to accomplish an objective. ... 
Professionals
The Workings Of Equity Portfolio Management
Achieve analytical efficiency by applying your evaluation to a key set of stocks. 
Trading Strategies
How to Create a Risk Parity Portfolio
Learn about how risk parity uses leverage to create equal exposure to risk among different asset classes in portfolio construction. 
Mutual Funds & ETFs
4 Steps To Building A Profitable Portfolio
This is a stepbystep approach to determining, achieving and maintaining optimal asset allocation. 
Personal Finance
How Risky Is Your Portfolio?
Find out how you could be subject to larger losses than you think. 
Options & Futures
6 Asset Allocation Strategies That Work
Your portfolio's asset mix is a key factor in whether it's profitable. Find out how to get this delicate balance right. 
Retirement
How To Create An Effective Retirement Income Strategy
We will design a portfolio that should balance the requirements of liberal income with sufficient liquidity to withstand down markets. 
Mutual Funds & ETFs
Major Blunders In Portfolio Construction
Do you have the best mix of investments? Find out how to make sure. 
Fundamental Analysis
Understanding Modern Portfolio Theory
Modern portfolio theory describes ways of diversifying assets in a portfolio in order to maximize the expected return given the ownerâ€™s risk tolerance.

Why is risk return tradeoff important in designing a portfolio?
Learn how the risk return tradeoff is used in the construction of portfolios, and how modern portfolio theory seeks to diversify ... Read Answer >> 
The BEST definition of a benchmark portfolio is:
The BEST definition of a benchmark portfolio is: a) A preset list of securities to be used to compare the performance of ... Read Answer >> 
What is the difference between market capitalization and equity?
Understand the difference between market capitalization and equity, two primary measurements used to evaluate the worth of ... Read Answer >> 
How does being overweight in a particular sector increase risk to a portfolio?
Learn about the risks of having a portfolio that is overweight in a particular sector and how investors should regularly ... Read Answer >> 
How are negative correlations used in risk management?
Learn about risk management and how negative correlations between assets are used to diversify and hedge risk associated ... Read Answer >> 
What does the end of the quarter mean for portfolio management?
Take a deeper look at why the end of a financial quarter, and all of its accompanying reports, is a significant event for ... Read Answer >>