Zacks #1 Ranked Growth Mutual Funds - Best of Funds

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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 growth stocks.

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 click here .

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 year.


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 year.

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 one year.

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, 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
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Mutual Funds


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