Investors aiming to harness maximum gains from a surging market often select aggressive growth funds. This category of funds invests heavily in undervalued stocks, IPOs and relatively volatile securities in order to profit from them in a congenial economic climate. Securities are selected on the basis of their issuing company’s potential for growth and profitability. By holding a larger number of securities and adjusting portfolios keeping in mind market conditions, 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. To view the Zacks Rank and past performance of all aggressive growth funds, then click here.
Legg Mason ClearBridge Aggressive Growth A (NASDAQ:SHRAX - News) seeks capital growth. The fund 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. The aggressive growth mutual fund has a three year annualized return of 20.39%.
The aggressive growth mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.28% against a category average of 1.29%.
Delaware Select Growth A (NASDAQ:DVEAX - News) invests in companies with superior growth potential and the ability to grow faster than the domestic economy. The fund invests in companies with a wide range of market capitalizations which are attractively priced. The aggressive growth mutual fund returned 15.51% over the last one year period.
Christopher M. Ericksen is the fund manager and has managed this aggressive growth mutual fund since 2007.
Needham Aggressive Growth (NASDAQ:NEAGX - News) 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 five year annualized return of 5.26%.
The aggressive growth mutual fund has a minimum initial investment of $2,000 and an expense ratio of 2.05% against a category average of 1.48%.
Sentinel Sustainable Growth Opportunities A (NASDAQ:WAEGX - News) invests a minimum of 65% of its assets in domestic mid-cap stocks. Not more than 25% of its assets may be utilized to purchase stocks from a single industrial sector. The aggressive growth mutual fund returned 10.21% over the last one year period.
As of October 2011, this aggressive growth mutual fund held 65 issues, with 4.21% of its total assets invested in Dollar Tree Stores, Inc.
American Century Ultra (NASDAQ:TWCUX - News) seeks long term capital appreciation. The fund focuses on acquiring large cap equity securities whose value is expected to rise appreciably in the future. The fund primarily invests in companies which are growing at a significantly fast rate. The aggressive growth mutual fund has a ten year annualized return of 2.19%.
Michael Li is the fund manager and has managed this aggressive growth mutual fund since 2008.
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.
More From Zacks.com