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Finance a la shmoop what is capital appreciation as in the sense of an

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investment fund or a mutual fund you know that is like what does it mean to

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have a mutual fund with a focus on capital appreciation all right people

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think more, more assets all right you have capital and yes you [Woman with a vault full of money]

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appreciate having that capital but you'd appreciate it more if there was more of

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it like it appreciated so a capital appreciation fund is one which focuses

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on just growing the assets bigger and bigger don't really care how the capital

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gets grown don't necessarily need dividends don't necessarily need minimum

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p/e ratios don't necessarily need balance sheet covenants on the

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investments you make don't care if it's exposed to the Venezuelan oil companies [Venezuela city landscape]

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or the Australian dollar in a cap app fund well you just want the dough to [Money falls into flower pot]

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grow and this ethos is in contrast to other flavors of funds which for example

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need to throw off cash in the form of dividends like in a growth and income

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fund or interest like in a bond fund like you know it's cash people need to

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live on right so those have to do a capital appreciation does not so what's

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a typical investment in a capital appreciation fund well usually be

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something like a mega trend tech stock that just grows or appreciates with time [Man typing on laptop]

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and really doesn't throw off much if any of a dividend like Amazon, Netflix

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Facebook, Google those guys so think of a capital appreciation fund is the body [Man wearing underpants in a locker room]

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builder of the mutual fund world it just wants to grow everywhere

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