Top aggressive growth mutual funds were designed to help investment managers obtain returns that are much faster than what they could get from more conservative investments. Aggressive growth funds can be ideal for investors who want to get into the stock market quickly. These types of funds typically offer higher rates of return because the risk of investing is higher. If you invest with top growth mutual funds, the rate of return may actually be lower than if you invested in more conservative funds. However, you will have a lot of potential for quick profits and a large capital account.
Top Aggressive Growth Mutual Funds Are Midcap And Small Cap Funds
The top aggressive growth mutual funds are midcap and small cap funds. Small cap funds, midcap funds and market growth funds all fall into the aggressive growth mutual funds category. However, industry specific sector funds tend to be long term and high risk in nature. If you are looking for a portfolio that offers a higher rate of return over a relatively short period of time, then you will likely do better by investing in midcap funds or smaller cap stocks.
Most aggressive growth funds offer higher rates of returns than do midcap and small cap stocks. You can do better by concentrating your investment in one type of investment vehicle. If you are going to invest in aggressive growth mutual funds, then you should probably also invest in other types of mutual funds as well. A good combination of a good-performing stock fund, with other stocks and bonds, should give you excellent results over the long run.
Invest In These High Return Funds Lack A Diversified Portfolio
The problem is that most people who invest in these high return funds lack a diversified portfolio. When you invest in high return funds, you are investing in a lot of stocks, with a very small percent allocated to other asset classes. A diversified portfolio will increase your annual income, but it will reduce your risk. Diversification of any sort is a matter of calculating the risks involved in any given investment and then balancing them with the potential for a high return.
Growth funds generally carry a higher rate of return than do midcap and small cap stocks. In many cases, aggressive funds have been specifically set up to maximize their returns through clever investment techniques. However, it is also true that some unscrupulous companies have injected high risk into the aggressive fund market in order to attract more aggressive investors. Make sure that you do your homework before investing in aggressive funds.
Investing In A Wide Variety Of Different Types Of Funds
There are many lists that will tell you which are the best aggressive funds, but you need to do your own research. Investing in a wide variety of different types of funds will allow you to make comparisons, allowing you to determine which are the ones that are going to offer you the best possible returns. You should do an investment analysis of the various growth funds to determine which ones are the most appropriate for your circumstances. Are you investing solely for growth, or are you seeking yield as well? Some of the best aggressive midcap and small cap growth funds include: Blue chip stocks, equity indexed funds, high return funds, inverse growth funds, real return funds, and asset-based growth funds.
The most efficient aggressive growth mutual funds will be those that concentrate on one or two sectors. Some mutual fund companies like Wisdom Tree invest in a wide variety of industries, but their greatest successes come from being concentrated in one or two. This will ensure that they are able to provide higher returns. They may also offer lower fees and expenses to those who wish to diversify. They may also offer alternative investments, like gold and silver, as well as dividends that do not depend on market fluctuations.
As with all mutual funds, there is a lot of research that needs to be done to make sure you pick the right ones for your needs. One of the easiest ways to determine which types of aggressive growth mutual funds are right for you is to research individual companies. An example of this would be Sunoco. They have been ranked number one for their long term performance, and their stock price has consistently risen over the last decade. While other top midsize and small cap mutual funds like Vanguard and Fidelity have consistently produced solid growth year after year, it is their industry that offers the highest dividends.