Aggressive growth funds are among the best possible vehicle for investments when markets are experiencing strong growth. Focusing on IPOs, low priced issues and volatile stocks, these funds looks to maximize gains during such favorable periods. They are designed primarily to achieve capital appreciation and invest in rapidly growing companies with prospects for above-average profit growth. For investors willing to accept a higher than normal risk-return trade-off and the willingness to forgo dividends for capital growth, aggressive growth funds could be the right choice.
Below we will share with you 4 top rated aggressive growth funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all aggressive growth funds, then click here.
Pin Oak Aggressive Stock (POGSX) invests the majority 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.
This aggressive growth fund returned 86.22% over the last one year period.
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 compared to their underlying value. It also looks for the firm’s ability to dominate its specific market segment and generate a steady cash flow. The fund returned 60.48% over the last one year period.
Christopher J. Bonavico is the fund manager and has managed this aggressive growth fund since 2005.
Alger Spectra Fund A (SPECX) seeks capital growth by investing in companies with significant growth potential. It invests in common and preferred stocks of companies with a wide range of market capitalizations. The aggressive growth fund returned 54.93% in 2009 and has a five year annualized return of 9.6%.
As of December 2009, this aggressive growth fund held 146 issues, with 3.42% of its total assets invested in Apple, Inc.
Franklin Growth Opportunities A (FGRAX) invests in stocks of companies with above average growth potential and may consider investing in small and mid-sized companies. The fund may also purchase foreign securities and invest in a specific sector such as technology. The aggressive growth fund returned 39.39% over the last one year period.
The fund manager is Conrad Herrmann and he has managed this aggressive growth fund since 1999.
To view the Zacks Rank and past performance of all aggressive growth 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/mutualfund/.
