Are penny stock mutual funds a solid aggressive investment?

I have $10K to spend on an aggressive penny stock mutual fund. What will this sort of fund do for me? Is it a wise investment, and if not, what is a better investment that will remain aggressive?

Investing, Mutual Funds, Stocks
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March 2017

Penny stocks are extremely speculative and you really have to do an enormous amount of due diligence. If you are to go that way, I would look at the manager's track record. But my advice is to steer clear.

If you want to be aggressive, you could go with the Russell Small Cap 2000 ETF, ticker IWM. This will give you all of the companies in the Russell Small Cap 2000 index, which are small companies, but larger than penny stocks, generally about 250 million up to a few billion, with the median size company being 690 million. This would give you small cap exposure and diversification (in that space) at the same time. I do hope you have other investments in larger companies and other asset classes.

Hope this helps, Dan Stewart CFA®

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