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. To view the Zacks Rank and past performance of all aggressive growth funds, then click here.
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 7.1%.
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%.
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 24.24% over the last one year period.
Elizabeth R. Bramwell is the fund manager and has managed this aggressive growth mutual fund since 2008.
Pin Oak Aggressive Stock (NASDAQ:POGSX - News) seeks capital growth over the long term. The fund 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 three year annualized return of 9.39%.
American Century Ultra (NASDAQ:TWCUX - News) 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 2.18%.
As of June 2011, this aggressive growth mutual fund held 81 issues, with 6.18% of its total assets invested in Apple, Inc.
First Investors Select Growth A (NASDAQ:FICGX - News) seeks long term capital appreciation. The fund 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 32.49% 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%.
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.
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