Fidelity Investments is one of the best fund families for aggressive investors. Why? Because they offer a wide range of low-cost, no-load growth stock funds that are well-managed. But before I present you with the list of the best Fidelity funds for aggressive investors, let’s define what it means to be aggressive and how this handful of funds made my list.
What It Means to be ‘Aggressive’
In the world of investing, the meaning of aggressive is somewhat fluid and abstract, which is to say that it can mean 10 different things to 10 different people. However, most investors can agree that aggressive mutual funds and their respective managers will generally do these things: seek rapid growth, buy stocks with high price/earnings, and accept high levels of risk relative to the broad market in exchange for the potential of high relative returns.
Therefore, aggressive investors are prioritizing growth above other investing objectives, such as income or preservation. They may be willing to take on the associated market risk because they have long-term time horizons, such as 10 years or more, or they may have a natural high tolerance for risk (or both).
How I Selected the Best Fidelity Funds for Aggressive Investors
To make my list of the best Fidelity funds for aggressive investors, the first and most obvious criterion is to be a Fidelity fund! For the first two funds on the list, I selected Fidelity funds that specifically state their portfolio objective to be “aggressive growth.” However, just saying you’re aggressive doesn’t actually mean you’re aggressive. Therefore, to dig a little deeper in the first few selections, I included funds with inception dates prior to 2007 and with managers that have been at the helm for at least 7 years.
Past performance is no guarantee of future results and a lack of history does not always suggest lack of future potential. But to have some assurance we are buying an aggressive fund, I looked at past performance for evidence of aggressive behavior. For example, we need to know how the fund performed during a period, such as 2007, when funds investing in growth stocks performed better than the broad market indices.
To round out my list I added two more funds in the categories of Emerging Markets and Technology, which are aggressive by nature. In these cases, I did not consider manager tenure as a selection criteria.
Now check out the list…