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.
Bridgeway Aggressive Investors 2 (BRAIX) seeks to provide higher total return than the stock market at levels of risk which the market experiences over long periods. The fund purchases a wide variety of common stocks of firms listed on the NYSE, AMEX and NASDAQ. This aggressive growth mutual fund returned 23.33% in the last one year period.
The aggressive growth mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.02% against a category average of 1.41%.
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 9.05%.
As of March 2011, this aggressive growth mutual fund held 73 issues, with 2.79% of its total assets invested in Chicago Bridge & Iron Company.
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. This aggressive growth mutual fund returned 24.38% in the last one year period.
James D. Troyer is the fund manager and has managed this aggressive growth mutual fund since 2006.
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 similar to those included in the Russell Mid-cap Growth index. This aggressive growth mutual fund has a five year annualized return of 6.21%.
The aggressive growth mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.05% against a category average of 1.41%.
Virtus Mid-Cap Growth A (PHSKX) seeks capital growth. The fund invests at least 80% of its assets in common stocks of companies whose market capitalizations are identical to firms included in the Russell Midcap Growth Index. The aggressive growth mutual fund has a three year annualized return of 4.78%.
Daniel L. Sido is the fund manager and has managed this aggressive growth mutual fund since 2006.
To view the Zacks Rank and past performance of all aggressive growth mutual funds, then click here.