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

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.

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