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.
USAA Aggressive Growth (USAUX) seeks capital growth. The fund focuses on purchasing equity securities of large companies which have the potential to deliver above-average growth. The fund invests heavily in domestic securities, but may also invest in foreign securities to a lesser extent. This aggressive growth mutual fund returned 25.43% in the last one year period.
The aggressive growth mutual fund has a minimum initial investment of $3,000 and an expense ratio of 1.03% 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 7.2%.
As of December 2010, this aggressive growth mutual fund held 69 issues, with 3.26% of its total assets invested in Rovi Corp.
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 14.18%.
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 38.15% 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%.
Commerce MidCap Growth (CFAGX) seeks capital growth over the long term. The fund invests the majority of its assets in mid-cap companies which have the ability to deliver significant earnings growth. The aggressive growth mutual fund has a five year annualized return of 3.89%.
Joseph C. Williams III is the fund manager and has managed this aggressive growth mutual fund since 1994.
To view the Zacks Rank and past performance of all aggressive growth mutual funds, then click here.