Aggressive growth funds are a natural choice for investors to harness the impetus surging markets provide to stock prices. Such mutual funds normally create portfolios consisting of volatile securities, low priced stocks and IPOs, whose value would rise appreciably during such upswings. Fund managers primarily select companies which have an impressive track record growth performance and the ability to return substantial profits in the future. Investors with the propensity of choosing capital growth over dividends would do well to consider aggressive growth mutual funds.
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.
RidgeWorth Aggressive Growth Stock A (SAGAX) seeks capital appreciation over the long term. The majority of the fund’s assets are utilized to acquire common stock and other equity securities traded on US markets. This includes listed American Depository Receipts. This aggressive growth mutual fund returned 24.59% in the last one year period.
Nancy Zevenbergen is the fund manager and has managed this aggressive growth mutual fund since 2004.
Pin Oak Aggressive Stock (POGSX) invests at least 80% of its assets in domestic stocks that demonstrate high growth potential. It concentrates on purchasing shares in small and medium domestic companies, with market capitalizations between $500 million and $5 billion. It is a no-load fund.
The aggressive growth mutual fund has a five year annualized return of 4.85%.
Needham Aggressive Growth (NEAGX) seeks long term capital growth. 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 is non-diversified and has returned 36.36% 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 1.47%.
Wells Fargo Advantage Discovery (STDIX) 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 7.18%.
As of September 2010, this aggressive growth mutual fund held 66 issues, with 3.32% of its total assets invested in SBA Communications Corporation.
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 32.19% 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.