Growth funds attain high levels of capital increment by investing in stocks of companies that are projected to rise in value over the long term. However, relatively higher tolerance for risk and the willingness to park funds for the longer term are necessary when investing in these securities. This is because these may experience relatively greater fluctuation than the other fund classes.
Additionally, large-cap funds are ideal investment options for those seeking a high-return potential accompanied by lesser risk than what small-cap and mid-cap funds bear. These funds have exposure to large-cap stocks with a long-term performance history, assuring more stability than what mid or small caps offer.
Below we share with you three top-ranked large-cap growth mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of all the large-cap growth mutual funds .
TIAA-CREF Growth & Income Retirement TRGIX invests a huge portion of its assets in those equity securities that have the prospect for dividend income, capital appreciation or even both. The fund normally invests in securities of large-cap companies. TIAA-CREF Growth & Income Retirement has one-year annualized returns of 15.5%.
As of Mar 31, 2018, TRGIX held 187 issues with 3.80% of its assets invested in Apple Inc.
Fidelity Large Cap Growth Enhanced Index FLGEX seeks appreciation of capital. FLGEX invests a large chunk of its assets in common stocks of large-cap companies, which are included in the Russell 1000 Growth Index. Fidelity Large Cap Growth Enhanced Index has one-year annualized returns of 17.7%.
Patrick Waddell is one of the fund managers of FLGEX since 2007.
T. Rowe Price Blue Chip Growth TRBCX invests heavily in common stocks of large as well as mid-cap blue-chip companies. The fund focuses on those companies that have good financial fundamentals, seasoned management, and strong market positions. T. Rowe Price Blue Chip Growth has one-year annualized returns of 28.2%.
TRBCX has an expense ratio of 0.70% compared with the category average of 1.02%.
To view the Zacks Rank and past performance of all large-cap growth mutual funds, investors can click here to see the complete list of funds .
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