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Mutual Fund Commentary

Aggressive growth mutual funds invest in companies which have the potential for attractive growth in earnings, cash flow and total worth. These funds focus on acquiring attractively priced stocks, IPOs and volatile securities in order to harness gains from a rising market. However, such securities show high levels of price volatility and are thus suitable only for investors with an appetite for risk. Mutual funds offer a secure option to invest in these instruments by holding a wide range of securities and responding to prevailing market conditions by adjusting portfolios

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 (NEAGX - MF report) 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. This aggressive growth mutual fund returned 39.81% in the last one year period.

John Barr is the fund manager and has managed this aggressive growth mutual fund since 2010.

Vanguard Strategic Equity (VSEQX - MF report) primarily purchases stocks of small and mid-cap companies depending on the ability of these securities to provide returns. It ensures that its risk profile is identical to the MSCI US Small + Mid Cap 2200 Index. The aggressive growth mutual fund has a ten year annualized return of 6.68%.

The aggressive growth mutual fund has a minimum initial investment of $3,000 and an expense ratio of 0.30% against a category average of 1.33%.

Legg Mason ClearBridge Aggressive Growth A (SHRAX - MF report) 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. This aggressive growth mutual fund returned 49% in the last one year period.

Evan S. Bauman is the fund manager and has managed this aggressive growth mutual fund since 2009.

Wells Fargo Advantage Discovery (STDIX - MF report) invests heavily in equity securities of small and mid-cap companies with the potential for above average growth. Firms considered for investment must have market caps within the range of the Russell Midcap Index. The aggressive growth mutual fund has a five year annualized return of 8.54%.

As of May 2011, this aggressive growth mutual fund held 68 issues, with 2.85% of its total assets invested in Kansas City Southern, Inc.

Waddell & Reed New Concepts A (UNECX) seeks capital growth by investing in mid-cap companies with above-average growth potential. It focuses on purchasing common stocks of domestic firms, but may also invest in foreign companies. The aggressive growth mutual fund returned 44.53% over the last one year period.

The aggressive growth mutual fund has a minimum initial investment of $500 and an expense ratio of 1.44% against a category average of 1.41%.

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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