Russel Kinnel: Aggressive growth funds are always making money or losing it in a hurry. They invest in cutting-edge companies with often high valuations and ride out wild swings in both directions. Used in moderation, they can be a nice boost to your portfolio. I’ve chosen three favorites to highlight, two of which I own.
3 Great Aggressive Growth Funds for 2025
- Morgan Stanley Institutional Discovery MACGX
- Primecap Odyssey Aggressive Growth POAGX
- Harbor Capital Appreciation HACAX
Morgan Stanley Institutional Discovery MACGX might be the most aggressive fund we rate. Dennis Lynch is a thoughtful investor in search of massive upside. The fund’s five- and 10-year returns top mid-growth peers and benchmark, yet it only rates as a 1-star fund because it has such extreme volatility. A hefty 55% of the fund is in tech, and it boasts tech top names of DoorDash, Cloudflare, and The Trade Desk. Lynch and team look for companies with enduring growth potential and strong network effects. The fund gained 142% in 2020, but it went on to lose 63% in 2022. Needless to say, if you buy this fund, keep it to a small position in your portfolio.
Now we move on to a fund with a focus on biotech stocks. Primecap Odyssey Aggressive Growth POAGX has 28% of AUM in healthcare and a total of 10% in biotech. It also has 32% in tech, which is actually pretty close to the benchmark. Primecap’s managers and analysts go deep into names and tend to be patient investors. The fund’s top two holdings, Eli Lilly and Rhythm Pharmaceuticals, both offer weight loss drugs. The fund is run by five managers running sleeves independently of one another. I own the fund because I think management and analysts do superior fundamental research into fast-growing names.
Moving up the market-cap ladder, large-growth stalwart Harbor Capital Appreciation HACAX gives you exposure to many of the giant tech leaders like Nvidia, Amazon, and Apple. Management looks for durable market leaders who have the research chops to keep their edge. When growth stocks rally, this fund generally produces excellent returns. Unlike the other two funds I mentioned, it is very firmly rooted in large- to mega-cap names, so it’s not the kind of aggressive growth that invests in young companies that are just starting out. I own this fund in my 401(k).
Watch 3 Great Funds for an IRA in 2025 for more from Russel Kinnel.