When capital appreciation over the long term takes precedence
over dividend payouts, growth funds become a natural choice for
investors. These funds focus on realizing an appreciable amount
of capital growth by investing in stocks of firms whose value is
projected to rise over the long term. However, a relatively
higher tolerance to risk and the willingness to park funds for
the longer term are necessary when investing in these securities.
This is because they may experience relatively more fluctuations
than other fund classes.
Below we will share with you 5 top rated 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 growth funds, investors
can click here to see the complete list of funds.
Pyxis Premier Growth Equity A
(HPEAX) seeks capital growth and income over the long term. It
invests heavily in equity securities and focuses on those
companies whose market capitalizations are above $2 billion. The
fund may invest in a variety of derivatives and also in foreign
securities. The growth mutual fund has a one year annualized
return of 16.88%.
David B. Carlson is the fund manager and he has managed this
growth mutual fund since 1996.
T. Rowe Price Growth Stock
(PRGFX) invests a large share of its assets in common stocks of a
wide range of growth-oriented companies. It focuses on those
companies which have higher dividend paying capacity. The growth
mutual fund has a one year annualized return of 13.10%.
As of September 2012, this growth mutual fund held 114 issues,
with 12.17% of its total assets invested in Apple Inc.
JHFunds2 Blue Chip Growth 1
(JIBCX) seeks capital growth over the long term. It invests
heavily in common stocks of growth-oriented large and mid-size
blue chip companies. A maximum of 25% of its assets may be
invested in convertible securities, preferred stocks and debt
securities. The growth mutual fund has a one year annualized
return of 12.20%.
The growth mutual fund has an expense ratio of 0.83% compared
to a category average of 1.27%.
Frost Growth Equity A
(FACEX) invests the majority of its assets in equity securities.
It focuses on those companies which have the potential to earn
higher revenues and earnings. It may also invest in domestic and
foreign equity securities as well as American Depositary Receipts
(ADRs). The growth mutual fund has a one year annualized return
of 6.60%.
Alan Tarver is the fund manager and he has managed this growth
mutual fund since 1981.
Hennessy Cornerstone Growth
(HFCGX) seeks capital growth over the long term. It invests in
common stocks of growth oriented companies. The fund selects 50
stocks using the Cornerstone Growth Strategy, which is its own
quantitative formula. It invests 2% of the portfolio's assets in
each of these 50 stocks. The growth mutual fund has a one year
annualized return of 24.17%.
The growth mutual fund has an expense ratio of 1.33% compared
to a category average of 1.35%.
To view the Zacks Rank and past performance of all growth
mutual funds, investors can click here to see the complete list
of funds.
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
.
View All Zacks #1 Ranked Mutual Funds
(FACEX): ETF Research Reports
(HFCGX): ETF Research Reports
(HPEAX): ETF Research Reports
(JIBCX): ETF Research Reports
(PRGFX): ETF Research Reports
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