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.
Lord Abbett Growth Leaders A
(LGLAX) invests a large share of its assets in equity securities
of growth oriented companies. The fund may invest in both
domestic and foreign equity securities. A minimum of half of its
net assets must be invested in companies which are part of the
Russell 1000 Index. The growth mutual fund returned 43.49% over
the last one year period.
The growth mutual fund has an expense ratio of 0.85% compared
to a category average of 1.23%.
Brown Advisory Opportunity
(BIAOX) seeks capital growth over the long term. The fund invests
heavily in equity of companies which are prominent in their
respective sectors. A maximum of 20% of its assets may be
invested in securities of foreign companies including the ones
from emerging markets. The growth mutual fund returned 37.18%
over the last one year period.
Eric Gordon is the fund manager and he has managed this growth
mutual fund since 2012.
RS Growth A
(RSGRX) invests primarily in securities issued by companies that
it classifies as those with large capitalizations. According to
its management team, such companies must have a market
capitalization not lower than $1 billion and not higher than that
of the largest company which is part of the Russell 1000 Index.
The growth mutual fund returned 40.59% over the last one year
The growth mutual fund has a minimum initial investment of
$2,500 and an expense ratio of 1.37% compared to a category
average of 1.23%.
Transamerica Capital Growth A
(IALAX) seeks significant capital growth. The fund invests in
both prominent and relatively new firms which are part of the
Russell 1000 Growth Index. The growth mutual fund returned 41.94%
over the last one year period.
As of September 2013, this growth mutual fund held 44 issues,
with 9.37% of its total assets invested in Facebook Inc.
Fidelity Blue Chip Growth
(FBGRX) invests the majority of its assets in blue chip firms.
The fund focusses on purchasing common stocks issued by prominent
companies. It purchases both domestic and foreign securities. The
growth mutual fund returned 35.04% over the last one year
Sonu Kalra is the fund manager and he has managed this growth
mutual fund since 2009.
To view the Zacks Rank and past performance of all growth
mutual funds, investors can click here to see the complete list
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.
View All Zacks #1 Ranked Mutual Funds
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