Investors looking to make the most of positive market conditions would do well to consider aggressive growth funds. These funds invest heavily in underpriced stocks, IPOs and volatile securities in order to reap maximum benefits when markets are surging. Securities are selected on the basis of their issuing company’s potential for growth and profitability. By holding a larger number of securities and constantly adjusting portfolios, aggressive growth funds offer a less risky route to investing in these instruments.
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.
Bridgeway Aggressive Investors 1 (BRAGX) seeks to provide higher total return than the stock market at levels of risk which the market experiences over long periods. The fund may purchase stocks with relatively lower levels of market liquidity. This aggressive growth mutual fund has a ten year annualized return of 3.61%.
John Montgomery is the fund manager and has managed this aggressive growth mutual fund since 1994.
First Investors Select Growth A (FICGX) invests in around 40-45 common stocks issued by companies of all sizes. These securities are selected on the basis of their ability to return superior earnings growth while also minimizing the occurrence of negative earnings surprises. This aggressive growth mutual fund returned 27.27% in the last one year period.
The aggressive growth mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.56% against a category average of 1.31%.
Waddell & Reed New Concepts A (UNECX) seeks capital growth by investing in mid-cap companies with above-average growth potential. It focuses on purchasing common stocks of domestic firms, but may also invest in foreign companies. This aggressive growth mutual fund has a five year annualized return of 9.43%.
As of March 2011, this aggressive growth fund held 71 issues, with 2.98% of its total assets invested in Fastenal Company.
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 30.41% in the last one year period.
William Chester is the fund manager and has managed this aggressive growth mutual fund since 2002.
Vanguard Strategic Equity (VSEQX) seeks capital growth over the long term. The fund purchases stocks of small and mid-cap companies depending on the ability of these securities to provide returns. It ensures that its risk profile is identical to the MSCI US Small + Mid Cap 2200 Index. This aggressive growth mutual fund has a three year annualized return of 4.14%.
The aggressive growth mutual fund has a minimum initial investment of $3,000 and an expense ratio of 0.30% against a category average of 1.34%.
To view the Zacks Rank and past performance of all aggressive growth mutual funds, then click here.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds/mutualfunds.