Finance: What is Capital Appreciation (Mutual Funds)?

Finance a la shmoop what is capitalappreciation as in the sense of an investment fund or a mutual fund youknow that is like what does it mean to have a mutual fund with a focus oncapital appreciation all right people think more, more assetsall right you have capital and yes you [Woman with a vault full of money] appreciate having that capital but you'dappreciate it more if there was more of it like it appreciated so a capitalappreciation fund is one which focuses on just growing the assets bigger andbigger don't really care how the capital gets grown don't necessarily needdividends don't necessarily need minimum p/e ratios don't necessarily needbalance sheet covenants on the investments you make don't care if it'sexposed to the Venezuelan oil companies [Venezuela city landscape] or the Australian dollar in a cap appfund well you just want the dough to [Money falls into flower pot] grow and this ethos is in contrast toother flavors of funds which for example need to throw off cash in the form ofdividends like in a growth and income fund or interest like in a bond fundlike you know it's cash people need to live on right so those have to do acapital appreciation does not so what's a typical investment in a capitalappreciation fund well usually be something like a mega trend tech stockthat just grows or appreciates with time [Man typing on laptop] and really doesn't throw off much if anyof a dividend like Amazon, Netflix Facebook, Google those guys so think of acapital appreciation fund is the body [Man wearing underpants in a locker room] builder of the mutual fund world it justwants to grow everywhere.

Source: Youtube