5 Best-Performing Aggressive Growth Mutual Funds Of Q1

Major bourses posted gains during the month of January. But, the stock market entered correction territory in February due to high inflationary expectations. Stocks further suffered in March due to President Trump’s tariff policies and plunge among tech stocks, which occurred due to certain company-specific issues. However, strong consumer and business sentiments, and a robust labor market helped curb losses towards the end of the first quarter.

Moreover, the U.S. economy’s aggregate productivity of goods and services topped expectations in the first quarter, sustaining hopes of solid recoil for the rest of the year. Banking on such positive vibes, addition of mutual funds with stunning growth potential to your portfolio could prove to be lucrative. Aggressive growth funds are considered one of the best investment options for investors with a high-risk appetite in search of optimum capital appreciation.

Taking cue from such developments on the economic front, we present the five best aggressive growth mutual funds from Q1.

U.S. Economy in Q1

U.S. GDP growth for the first three months was reportedly the highest for any first quarter since 2015. At full employment, the economy is presently showcasing remarkable strength in both business and consumer confidence. Also, signs of robust economic momentum are most likely to bolster infrastructure spending in the United States.

On Apr 27, the Bureau of Economic Analysis (BEA) reported that U.S. GDP growth rate was 2.3% for the January-March period, better than the 2% gain predicted by analysts.

In the last four quarters, GDP growth rate averaged 2.9%, almost in line with 3% growth predicted by the Trump administration. However, the American economy slightly slowed in the three months ended March. This has been largely attributed to a decline in consumer spending.

Aggressive Growth Funds

Given such favorable conditions, investors seeking a high level of capital growth should look no further than investing in aggressive growth mutual funds. These funds invest in companies that show high growth potential, but this comes with the risk of share price fluctuation. This category of funds also invests heavily in undervalued stocks, IPOs, and relatively volatile securities and seeks to profit from them in a congenial economic climate. The securities are selected on the basis of a company’s potential for growth and profitability.

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