Mutual funds with the objective of "aggressive growth" invest mainly in riskier stocks, looking for maximum growth with little consideration for income or time horizon.
Investors can find such funds by checking out the Zacks #1 Rank Aggressive Growth Mutual Funds list.
3 Solid Picks
The Needham Aggressive Growth fund (NEAGX - MF report), PRIMECAP Odyssey Aggressive Growth (POAGX) and New Century Opportunistic fund (NCAPX) are just three samples from the list.
Needham Aggressive Growth fund's (NEAGX - MF report) objective is long-term capital appreciation by investing in equities. It looks for companies with strong management, superior balance sheets, above-average margins that can generate excess cash, strong R&D and brand spending in industries with high barriers to entry. NEAGX also seeks tax efficiency and lowered risk exposure through the use of hedging instruments such as short selling and options.
The fund outperformed the S&P 500 in the 1-, 3- and 5-year categories. The no-load fund has seen 5 up years since its inception on September 4, 2001.
Needham Aggressive Growth is managed by Bernard Lirola since January 2008. Lirola has 31 years of experience on Wall Street.
The fund has Express Scripts (ESRX), Alliance Data (ADS) and Gilead Sciences, Inc. (GILD) among its top 10 holdings. The fund's turnover ratio is 44%.
Individuals can purchase shares of this fund with a minimum initial investment of $5000 ($1500 for IRAs). Subsequent minimum investments are $500.
PRIMECAP Odyssey Aggressive Growth fund (POAGX) seeks long-term capital appreciation, investing mainly in U.S. stocks, particularly those that are expected to see robust earnings growth. The fund's holdings do not typically pay dividends and consist mostly of small- and mid-caps but could include foreign companies.
The fund's top 10 holdings include American Italian Pasta Company (AIPC), Conceptus (CPTS) and Medarex (MEDX). The fund offers a turnover ratio of 24%.
To invest, one must start with a minimum of $2000 ($1000 for IRAs). Additional purchases must be at least $150.
The 4-year old, no load fund topped the S&P 500 in both the 1- and 3-year periods.
Theo A. Kolokotrones is the lead portfolio manager since November 2004. Kolokotrones is President and Co-Founder of PRIMECAP Management Company, which he co-founded in September 1983. He has worked in portfolio management since 1979. Kolokotrones was Vice President and Senior Financial Analyst at Smith Barney, Harris Upham and Company from 1970 to 1977.
New Century Opportunistic fund (NCAPX) is focused on capital growth by investing in registered investment companies. In other words, NCAPX is a fund of funds. It invests in other investment vehicles, such as stock mutual funds, and can invest in funds that hold debt securities, including high-yield, lower rated debt securities. The fund is dedicated to a philosophy of risk reduction through diversification without sacrificing performance.
New Century Opportunistic's top 10 holdings are currently comprised mostly of index-related funds that follow the S&P 500, the Dow, small caps, mid caps, technology and emerging markets to name a few. The fund has a turnover ratio is 56%.
NCAPX is managed by Wayne Grzecki since November 2000. In addition to being the lead portfolio manager, Grzecki is also President of New Century Portfolios and has been with the Advisor since 1986, managing various portfolios.
This no load fund has fared better than the S&P 500 over the 1-, 3- and 5-year periods. NCAPX has so far turned in 5 profitable years since its inception of November 16, 2000.
Investors can get in with a minimum of $1000 ($500 for IRAs). Subsequent minimum purchases are $50.
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