A single minded focus towards capital appreciation is what best
characterizes growth funds. This purity of style is further
established by the fact that investors can expect few or no
dividend pay outs from such mutual funds. But investing in this
class of funds requires a relatively higher appetite for risk than
those following a value or blend style towards investing. However,
in depth research and professional management are what make mutual
funds a much safer proposition as compared to directly investing in
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 #1 (Strong Buy) mutual fund list and past
performance of the funds, investors can
Lord Abbett Growth Leaders A
(LGLAX) seeks capital growth. It invests in both domestic and
foreign companies having remarkable growth prospect over the long
run. It invest a minimum of 50% of its assets in companies whose
market capital size is similar to companies listed in the Russell
1000 Index. The growth mutual fund returned 23.72% in the last one
The fund has an expense ratio of 0.85% as compared to category
average of 1.21%.
Fidelity Large Cap Growth Enhanced Index
(FLGEX) seeks capital growth over long run. It invests a lion's
share of its asset in large cap companies which are listed in the
Russell 1000 Growth Index. Factors such as past valuation and
growth performances are taken into consideration for its investment
decision. The growth mutual fund returned 24.51% in the last one
As of April 2014, this fund held 172 issues with 4.67% of its
assets invested in Apple Inc.
Federated MDT Mid Cap Growth Strategies
(FGSAX) seeks capital growth. It invests majority of its assets in
mid-cap firms having impressive growth potentials. The market
capitalizations of these companies are within the range of market
cap of companies included in the Russell Midcap Growth Index. The
growth mutual fund returned 25.92% in the last one year.
The fund has an expense ratio of 1.22% as compared to category
average of 1.33%.
RS Mid Cap Growth A
(RSMOX) invests most of its assets in companies whose market cap is
not lower than $1 billion. In addition their market cap must not be
higher than 1.2x of the largest company included in Russell Midcap
Index. Usually, investments are made in domestic companies but a
portion is invested in foreign companies. The growth mutual fund
has returned 20.56% in the last one year period.
As of March 2014, the fund held 73 issues with 2.38% of its
assets invested in Wynn Resorts Ltd.
Fidelity Growth Discovery
(FDSVX) seeks capital growth over the long run. It invests in both
U.S. and non-U.S. companies that are believed to have above-average
growth prospect. The fund considers factors such as financial
strength, and market and economic condition for investment
decisions. The growth mutual fund has returned 28.12% in the last
The fund has an expense ratio of 0.87% as compared to category
average of 1.21%.
To view the Zacks Rank and past performance of all mutual funds,
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
View All Zacks #1 Ranked Mutual Funds
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