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5 Best-Performing Aggressive Growth Mutual Funds of 2019 So Far

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US equities have performed remarkably well so far this year, with stocks hitting record highs just last week. Investors are currently betting on an imminent quarter-point rate cut by the Fed, which could propel equities even higher. In addition, robust new job additions toward the end of H1 2019 helped curb losses.

In such a scenario, aggressive growth mutual funds are ideal investments, especially for investors with a high-risk appetite.

Strong June Job Additions Indicate Healthy Economy

The country witnessed an impressive 224,000 new job additions last month, according to the Labor Department. New job additions across sectors were broad-based, with professional and business services, healthcare, transportation, and construction being the biggest beneficiaries.  

Robust hiring also abated fears of a slowdown in the economy. In fact, the labor market’s rebound in June despite global economic woes and the United States’ ongoing trade disputes points toward the underlying strength in the economy.

What’s more, the country is currently into its 11th year of bull market, marking the longest expansion ever.

Fed Rate Cut Highly Likely in July-End

However, regardless of the striking number of new jobs added last month, a rate cut by the Fed in the FOMC meeting scheduled for Jul 30-31 appears likely. Fed Chair Jerome Powell’s testimony last week clearly conveys his concern over trade uncertainties and weakness in global growth.

Further, the CME FedWatch, which closely watches FOMC rate moves, is expecting a definite quarter-point rate cut at the end of this month (benchmark rates are currently in the range of 2.25-2.5%). Fed’s dovish move could only help sustain the economy ahead, which is great news for equity markets.

So Why Invest in Aggressive Growth Funds Now?

Aggressive growth mutual funds are ideal for investors seeking high capital growth. These funds mostly invest in companies that have potential for high growth, thus offering the risk of greater instability in share price performances. These funds also invest in IPOs, volatile securities and undervalued stocks in order to generate high returns. The fund advisor chooses the securities for purchase based on their profitability and growth potential.

The current market scenario is apt for such investments because a likely rate cut by the central bank could boost Wall Street ahead.

The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

5 Top Choices

We have selected five best-performing aggressive growth mutual funds that you could consider adding to your portfolio. These funds either carry a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy). Moreover, these funds have provided encouraging returns on a year-to-date basis. Additionally, the minimum initial investment is within $5000.

Vanguard Strategic Equity Fund Investor Shares (VSEQX - Free Report) seeks capital growth. The fund invests in small- and mid-capitalization domestic equity securities based on the fund advisor’s judgement of the relative return potential of the securities. The fund invests the majority of its shares in equity securities.

This Zacks sector – Mid Cap Blend product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.

VSEQX carries a Zacks Mutual Fund Rank #1 and has returned 17.8% on a year-to-date basis. The fund has a minimum initial investment of $3000.

Jacob Micro Cap Growth Fund Investor Class shares JMCGX invests most of its assets in micro capitalization companies. These companies are those that have market capitalizations less than or equal to $600 million or within the Russell Micro Cap Growth Index’s range of capitalization at the time of purchase. The fund aims for capital appreciation.

This Zacks sector – Small Cap Growth product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.

JMCGX carries a Zacks Mutual Fund Rank #1 and has returned 34.8% on a year-to-date basis. The fund has a minimum initial investment of $2500.

Janus Henderson Enterprise Fund Class T JAENX) invests about half of its equity assets in medium-sized companies. JAENX aims for capital growth. These companies are those that have market capitalizations in the range of companies in the Russell 2500 Growth Index. The fund may also invest in foreign securities and emerging market investments.

This Zacks sector – Mid Cap Growth product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.

JAENX carries a Zacks Mutual Fund Rank #2 and has returned 26.2% on a year-to-date basis. The fund has a minimum initial investment of $2500.

The Hartford Growth Opportunities Fund Class A HGOAX seeks capital growth. The fund mostly invests in a diversified portfolio of common stocks that cover a wide range of industries, companies and market capitalization that the fund’s sub-adviser feels have potential for long-term growth. The fund may invest a quarter of its net assets in foreign issuers and non-dollar securities as well.

This Zacks sector – Mid Cap Growth product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.

HGOAX carries a Zacks Mutual Fund Rank #2 and has returned 27.8% on a year-to-date basis. The fund has a minimum initial investment of $2000.

HSBC Opportunity Fund Class A HSOAX aims for capital growth over a long period of time. The fund mostly invests in equity securities of small- and mid-capitalization companies. These companies are those that have market capitalization in the range of companies in the Russell 2500 Growth Index.

HSOAX carries a Zacks Mutual Fund Rank #2 and has returned 20.7% on a year-to-date basis. The fund has a minimum initial investment of $1000.

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