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.
Legg Mason ClearBridge Aggressive Growth A (SHRAX) 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 39.67% 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 1.31%.
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 five year annualized return of 9.14%.
As of May 2011, this aggressive growth mutual fund held 68 issues, with 2.85% of its total assets invested in Kansas City Southern, Inc.
Delaware Select Growth A (DVEAX) 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. The aggressive growth mutual fund returned 36.83% over the last one year period.
Christopher M. Ericksen is the fund manager and has managed this aggressive growth mutual fund since 2007.
Quaker Strategic Growth A (QUAGX) seeks long term capital appreciation. The fund invests a large share of its assets in common stocks of domestic companies with a wide range of market capitalizations. The aggressive growth mutual fund has a ten year annualized return of 3.38%.
The aggressive growth mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.99% against a category average of 1.31%.
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 36.64% in the last one year period.
Eivind Michelle Olsen is the fund manager and has managed this aggressive growth mutual fund since 2009.
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.