Markets

The Zacks Analyst Blog Highlights: PRIMECAP Odyssey Aggressive Growth, Vantagepoint Aggressive Opportunities Investor and ClearBridge Aggressive Growth A - Press Releases

For Immediate Release

Chicago, IL - April 08, 2015 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the PRIMECAP Odyssey Aggressive Growth ( POAGX - Free Report ), Vantagepoint Aggressive Opportunities Investor ( VPAOX - Free Report ) and ClearBridge Aggressive Growth A ( SHRAX - Free Report ).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .

Here are highlights from Tuesday's Analyst Blog:

3 Aggressive Growth Funds for High Capital Gains

The growth mutual fund category has outperformed the broader markets in the first quarter. The S&P 500 and the Dow had a dismal first quarter. While S&P 500 gained 0.4%, the Dow slipped. However, the large, mid and small cap growth mutual funds posted decent gains, even beating their value and blend counterparts.

When capital appreciation over the long term takes precedence over dividend payouts, growth funds become a natural choice for investors. However, investors looking for the highest capital gains should look no further than investing in aggressive growth mutual funds.

The Russell Aggressive Growth ETF boasts year-to-date return of 16.7%. Thus, it outperformed the broader markets and even the returns from large, mid and small cap growth funds. For the risk takers and with the objective to seek highest capital gains, aggressive growth mutual funds are the best options to invest in. The search for higher returns often leads investors with the willingness to accept a high risk-return trade off toward aggressive growth mutual funds.

Aggressive Growth Funds

These funds invest in companies that show high growth prospects, but that comes with the risk of share price fluctuations. This category of funds also invests heavily in undervalued stocks, IPOs and relatively volatile securities in order to profit from them in a congenial economic climate. Securities are selected on the basis of their issuing company's potential for growth and profitability.

This category of instruments has a strong positive correlation with market movements and provides good returns during a market upswing. Such performance is achieved by investing in securities issued by companies with strong growth potential and in IPOs which are often resold quickly at a handsome profit. Many aggressive growth mutual funds may also invest in options to achieve their goal of high returns.

Growth Funds' Performance

It is said that a relatively higher tolerance to risk and the willingness to park funds for the longer term are necessary when investing in these funds. This is because they may experience relatively more fluctuations than other fund classes. However, that has not really been the case for the growth funds, and more so for aggressive ones, during this first quarter.

3 Aggressive Growth Funds to Buy

Below we present 3 top-ranked mutual funds with aggressive growth investment objective. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) or a Zacks Mutual Fund Rank #2 (Buy) as we expect these mutual funds to outperform their peers in the future.

Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but the likely future success of the fund.

The funds have relatively low expense ratio and carry no sales load. They also have decent year-to-date, 1-year and 3-year returns.

PRIMECAP Odyssey Aggressive Growth ( POAGX - Free Report ) prioritizes investing in US companies having rapid earnings growth potential. Though the fund invests across market sectors and market caps, it has historically invested most of its assets in mid to small cap firms.

POAGX currently carries a Zacks Mutual Fund Rank #1 (Strong Buy) . It has returned 6.5% year to date, beating the broader markets. The 1 and 3-year returns stand at healthy 17% and 26.3%, respectively. The fund carries an expense ratio of 0.62% as compared to category average of 1.31%.

Vantagepoint Aggressive Opportunities Investor ( VPAOX - Free Report ) seeks capital growth over the long term. It invests using an actively-managed strategy in stocks of small to mid cap domestic and foreign firms, which are believed to have high capital growth prospects. The fund also invests in stocks listed in a custom version of the Russell Midcap Growth Index.

VPAOX currently carries a Zacks Mutual Fund Rank #2 (Buy) . It has returned 5.4% year to date, beating the broader markets. The 1 and 3-year returns stand at healthy 8% and 15.4%, respectively. The fund carries an expense ratio of 0.83% as compared to category average of 1.31%.

ClearBridge Aggressive Growth A ( SHRAX - Free Report ) invests in companies whose growth or earnings exceed the average rate of earnings growth of companies that make up the S&P 500 index. It purchases securities of prominent companies with large market capitalizations which have the ability to grow appreciably over the long term.

SHRAX currently carries a Zacks Mutual Fund Rank #1 (Strong Buy) . It has returned 3.1% year to date. The 1 and 3-year returns stand at healthy 10.1% and 20.7%, respectively. The fund carries an expense ratio of 1.15% as compared to category average of 1.20%.

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. Pick the best mutual funds with the Zacks Rank.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today .

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Get Your Free (POAGX): Fund Analysis Report

Get Your Free (VPAOX): Fund Analysis Report

Get Your Free (SHRAX): Fund Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

SHRAX POAGX

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More