3 Large-Cap Growth Funds to Buy as Nasdaq Hits All-Time High

On Mar 1, the Nasdaq Composite closed 1.1% higher at 16,274.94 points, extending its rally after it hit an all-time high in the earlier session on Feb 29. The tech-heavy index which has been on a rally since the beginning of this year, following a robust 2023, gained 6.1% last month.

The first two months of the year were great for Wall Street and the rally continued into March. Earlier in February, the Dow and the S&P 500 hit new all-time highs. The Nasdaq was a bit slow in catching up but has now jumped the bandwagon aided by a tech rally.

The tech rally started last year, following a not-so-memorable 2022, that saw the Nasdaq gaining 43.4% in 2023, one of its best years in recent times. The momentum has continued into this year with the index advancing 8.4% year to date.

The ongoing rally is being driven by the ongoing enthusiasm surrounding artificial intelligence (AI), particularly generative AI, that has taken the world by storm over the past year, spearheaded by NVIDIA Corporation (NVDA).

AI holds immense potential, and although still in its nascent stage, the space has built up tremendous enthusiasm surrounding it. Experts believe that the real potential of AI is yet to be seen by the world.

This has seen an increasing number of companies exploring the potential of AI in a bid to grab more business opportunities. Additionally, the advancement of other smart devices is contributing to this space, as they also require computing and learning capabilities for tasks like face detection, image recognition and video analytics.

These operations necessitate attributes like high processing power, speed, memory, low power consumption, and enhanced graphic processors and solutions. These requirements create advantageous conditions for the semiconductor industry.

3 Best Choices

We have, thus, selected three large-cap growth mutual funds, namely T. Rowe Price Blue Chip Growth TRBCX, Nuveen Winslow Large-Cap Growth ESG Fund NVLIX and Voya Large-Cap Growth A NLCAX, which carry a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) and are poised to gain. Moreover, these funds have encouraging three and five-year returns. Additionally, the minimum initial investment is within $5000.

We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors in identifying potential winners and losers. Unlike most fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.

The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

T. Rowe Price Blue Chip Growth fund’s objective is to provide long-term capital growth. TRBCX invests at least 80% of net assets in common stocks of large and medium-sized blue-chip companies that have the potential for above-average growth in earnings and are well-established in their respective industries.

T. Rowe Price Blue Chip Growth fund has a track of positive total returns for over 10 years. Specifically, TRBCX’s returns over the three and five-year benchmarks are 4.3% and 12%, respectively. The annual expense ratio of 0.70% is lower than the category average of 0.96%. TRBCX has a Zacks Mutual Fund Rank #1.

To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.

Nuveen Winslow Large-Cap Growth ESG Fund seeks current income exempt from federal income taxes. NVLIX invests in investment-grade municipal securities with average maturities between one and five years.

Nuveen Winslow Large-Cap Growth ESG Fund has a track of positive total returns for over 10 years. Specifically, NVLIX’s returns over the three and five-year benchmarks are 10.3% and 17.1%, respectively. The fund has an annual expense ratio of 0.66%. NVLIX has a Zacks Mutual Fund Rank #1.

To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.

Voya Large-Cap Growth A fund seeks long-term capital appreciation by investing in equity securities of U.S. growth companies, emphasizing large-sized firms. NLCAX normally invests at least 80% of its assets in equity securities of large U.S. companies.

Voya Large-Cap Growth A fund has a track of positive total returns for over 10 years. Specifically, NLCAX’s returns over the three and five-year benchmarks are 6.8% and 13.6%, respectively. The fund has an annual expense ratio of 0.90%. NLCAX has a Zacks Mutual Fund Rank #1.

To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.

Want key mutual fund info delivered straight to your inbox?

Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>

Zacks Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Get Your Free (TRBCX): Fund Analysis Report

Get Your Free (NVLIX): Fund Analysis Report

Get Your Free (NLCAX): Fund Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.