THE BEST GROWTH FUNDS

When the conditions are right, we often shift money into more aggressive growth funds.  Our preferred growth fund options are the Nasdaq index fund (ONEQ) and the Nasdaq-100 index fund (QQQ).  The Nasdaq is the other major US stock exchange besides the New York Stock Exchange.  The Nasdaq contains more growth companies than the S&P 500 and a higher concentration of technology companies.

There are very few funds that can outperform the Nasdaq index funds, particularly the Nasdaq 100 index fund (QQQ).  But there are a handful that you could consider if you want to get more growth from your investments.  Like the Nasdaq, they tend to be highly volatile, and you would want to combine an aggressive strategy like this with our Market Signals system to protect against what could be large losses in bear markets.

You should also note from the funds listed below that there are only a handful of funds out of the total universe of 9,000 funds that can even be considered based on a 30-year track record. This is why I am constantly recommending index funds vs. mutual funds or attempting to pick stocks on your own.

Most of the aggressive growth funds worth considering are heavily invested in technology stocks like the ones included in the Nasdaq-100.  Many of the top performing aggressive growth funds look a lot like the Nasdaq-100.  They try to mirror the Nasdaq-100 so they show up in the list of top performing funds. In this case, you are better off sticking with the Nasdaq-100 index fund because it will carry lower fees and expenses.

The Fidelity Growth Fund is one of the best performing mutual funds.  Its individual stock holdings and its sector allocations are very similar to the Nasdaq-100.  Its performance also mirrors the Nasdaq-100. 

Other top performing aggressive growth funds go even deeper into technology and focus on narrow sectors like semiconductors.  The semiconductor segment has performed very well recently because of the momentum behind artificial intelligence infrastructure companies (NVIDIA).  These funds would tend to be even more volatile than the Nasdaq.

The other Fidelity and Vanguard aggressive growth funds on the list are different than the Nasdaq-100.  They are almost exclusively invested in tech companies compared to the Nasdaq-100 that has about 50% of its assets invested in technology. 

CONCLUSION

For the investor that is interested in aggressive growth, I would recommend including the Nasdaq-100 and one of the tech-focused funds listed in the table. Depending upon how aggressive you wanted to be you could allocate different percentages to each of the funds.

If you are the type of investor who is willing to take on more risk to achieve higher investment returns, you do have some options.  It is possible to achieve higher average annual returns in the long run by investing in top performing aggressive growth funds.

You will be taking on more risk is due to less diversification.  If something bad happens in the technology sector, losses in these funds could be significant and prolonged. Market Signals can mitigate most of that risk.

Stay Disciplined My Friends.

Phil

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