Top 5 Aggressive Growth Mutual Funds (Feb. 2011)

Aggressive growth mutual funds invest in companies which have the potential for attractive growth in earnings, cash flow and total worth. These funds focus on acquiring attractively priced stocks, IPOs and volatile securities in order to harness gains from a rising market. However, such securities show high levels of price volatility and are thus suitable only for investors with an appetite for risk. Mutual funds offer a secure option to invest in these instruments by holding a wide range of securities and responding to prevailing market conditions by adjusting portfolios.

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.

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. This aggressive growth mutual fund returned 23.92% 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%.

Franklin Growth Opportunities A (FGRAX) invests in stocks of companies with above average growth potential and may consider investing in small and mid-sized companies. The fund may also purchase foreign securities and invest in a specific sector such as technology. The aggressive growth mutual fund has a five year annualized return of 6.2%

As of December 2010, this aggressive growth mutual fund held 85 issues, with 4.36% of its total assets invested in Apple, Inc.

Needham Aggressive Growth (NEAGX) seeks capital appreciation. Equity securities of domestic companies constitute at least 65% of the fund’s investments. The fund invests in companies of all sizes but concentrates on smaller firms. The aggressive growth mutual fund has a three year annualized return of 9.83%.

John Barr is the fund manager and has managed this aggressive growth mutual fund since 2010.

Westcore MIDCO Growth (WTMGX) primarily invests in stocks of medium-sized companies with significant growth potential. The majority of its assets are invested in mid-cap companies with market capitalizations similar to those included in the Russell Mid-cap Growth index. This aggressive growth mutual fund returned 30.19% in the last one year period.

The aggressive growth mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.08% against a category average of 1.46%.

Wells Fargo Advantage Discovery (STDIX) seeks capital growth over the long term. The fund invests heavily in equity securities of small and mid-cap companies with the potential for above average growth. Firms considered for investment must have market caps within the range of the Russell Midcap Index. The aggressive growth mutual fund has a ten year annualized return of 8.57%.

Thomas J. Pence is the fund manager and has managed this aggressive growth mutual fund since 2001.

To view the Zacks Rank and past performance of all aggressive growth mutual funds, then click here.

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