The search for higher returns often leads investors with the willingness to accept a high risk-return trade off towards aggressive growth mutual funds. 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.

Below we will share with you 5 top rated aggressive growth mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all aggressive growth funds, then click here.

Needham Aggressive Growth (NEAGX) seeks capital appreciation. Equity securities of domestic companies constitute at least 65% of the fund’s investments. The fund invests in companies of all sizes but concentrates on smaller firms. The aggressive growth mutual fund has a five year annualized return of 5.26%.

The aggressive growth mutual fund has a minimum initial investment of $2,000 and an expense ratio of 2.05% against a category average of 1.48%.

Sentinel Sustainable Growth Opportunities A (WAEGX) invests a minimum of 65% of its assets in domestic mid-cap stocks. Not more than 25% of its assets may be utilized to purchase stocks from a single industrial sector. The aggressive growth mutual fund returned 10.21% over the last one year period.

As of November 2011, this aggressive growth mutual fund held 60 issues, with 4.37% of its total assets invested in Dollar Tree Stores, Inc.

Legg Mason ClearBridge Aggressive Growth A (SHRAX) seeks capital growth. The fund focuses on acquiring equity securities of companies whose earnings growth is higher than the average returned by firms which make up the S&P 500. The aggressive growth mutual fund has a three year annualized return of 20.39%.

Richard Freeman is the fund manager and has managed this aggressive growth mutual fund since 1983.

Delaware Select Growth A (DVEAX) invests in companies with superior growth potential and the ability to grow faster than the domestic economy. The fund invests in companies with a wide range of market capitalizations which are attractively priced. The aggressive growth mutual fund returned 15.51% over the last one year period.

The aggressive growth mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.51% against a category average of 1.36%.

American Century Ultra (TWCUX) seeks long term capital appreciation. The fund focuses on acquiring large cap equity securities whose value is expected to rise appreciably in the future. The fund primarily invests in companies which are growing at a significantly fast rate. The aggressive growth mutual fund has a ten year annualized return of 2.19%.

Keith Lee is the fund manager and has managed this aggressive growth mutual fund since 2008.

To view the Zacks Rank and past performance of all aggressive growth mutual funds, then click here.

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. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds.