After the COVID pandemic and inflation crisis, a boom in the tech sector, driven largely by advancements in artificial intelligence, has restored investor confidence. The Federal Reserve’s strict monetary policy decisions to control inflation have also played a major role. Currently, inflation is hovering near the Fed’s 2% target. The Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 have posted positive returns of 11.5%, 20.2% and 15.8%, respectively, so far this year.
Markets have experienced choppy movements recently, as investors rotate out of high-valuation technology and AI stocks despite positive earnings news from major tech companies into traditionally safer sectors. Additionally, uncertainty over the Fed’s December interest rate cut expectations has led market participants to remain cautious. Despite stubborn inflation, many expect a quarter-percentage-point cut in benchmark interest rates as the labor market remains sluggish. The unemployment rate for September increased to 4.4%, the highest in four years, compared to 4.3% in August, while nonfarm payrolls rose by 119,000, following a decline of 4,000 in August.
Historically, the stock markets have performed well ahead of the holiday season, especially during the Thanksgiving week. Thus, investors who prefer capital appreciation over dividend payouts may consider investing in these three growth mutual funds, such as Bridgeway Aggressive Investors BRAGX, Fidelity New Millennium Fund FMILX and Fidelity Growth Strategies Fund FDEGX that have exposure to large, mid and small-cap stocks, and are projected to rise in value over the long term.
By the way, these funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), positive three-year and five-year annualized returns, and minimum initial investments within $5000. They also carry a low expense ratio.
Moreover, mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Bridgeway Aggressive Investors fund invests most of its net assets in common stocks of companies irrespective of their size that are listed on the New York Stock Exchange, NYSE American and NASDAQ. BRAGX advisors may also invest in stocks for which there is relatively low market liquidity, as periodically determined by the adviser based on the stock’s trading volume.
Jacob Pozharny has been the lead manager of BRAGX since June 30, 2024. Most of the fund’s exposure is in companies like NVIDIA (4.5%), Microsoft (4.2%) and Apple (2.4%) as of June 30, 2025.