The search for higher returns often leads investors with the willingness to accept a high risk-return trade off towards aggressive growth mutual funds. This category of instruments has a strong positive correlation with market movements and provides good returns during a market upswing. Such performance is achieved by investing in securities issued by companies with strong growth potential and in IPOs which are often resold quickly at a handsome profit. Many aggressive growth mutual funds may also invest in options to achieve their goal of high returns.
Below we will share with you 5 top rated aggressive growth mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future.
Needham Aggressive Growth (NEAGX) seeks long term capital growth. Equity securities of domestic companies constitute a large portion of the fund’s investments. The aggressive growth mutual fund is non-diversified and has returned 37.24% over the last one year period.
The aggressive growth mutual fund has a minimum initial investment of $2,000 and an expense ratio of 2.49% against a category average of 1.46%.
Wells Fargo Advantage Omega Growth A (EKOAX) invests a major portion of its assets in common stocks. The fund focuses on acquiring securities of domestic companies and selects firms without regard to their size. The aggressive growth mutual fund has a five year annualized return of 6.19%.
Aziz Hamzaogullari is the fund manager and has managed this aggressive growth mutual fund since 2006.
Legg Mason ClearBridge Aggressive Growth A (SHRAX) seeks capital growth. The fund focuses on acquiring equity securities of companies whose earnings growth is higher than the average returned by firms which make up the S&P 500. It may also invest substantially in smaller companies. This aggressive growth mutual fund returned 24.28% in the last one year period.
The aggressive growth mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.29% against a category average of 1.32%.
Eagle Mid Cap Growth A (HAGAX) invests at least 80% of its assets in equity securities of mid-cap companies which were within the market capitalization range of the Russell Midcap Growth index during the most recent 12-month period. The aggressive growth mutual fund has a ten year annualized return of 7.66%.
As of December 2010, this aggressive growth mutual fund held 69 issues, with 3.26% of its total assets invested in Rovi Corp.
Delaware Select Growth A (DVEAX) seeks capital appreciation over the long term. The fund invests in companies with superior growth potential and the ability to grow faster than the domestic economy. It invests in companies with a wide range of market capitalizations which are attractively priced compared to their underlying value. The aggressive growth mutual fund returned 25.53% over the last one year period.
Gregory M. Heywood is the fund manager and has managed this aggressive growth mutual fund since 2005.
To view the Zacks Rank and past performance of all aggressive growth mutual funds, then click here.