Markets

5 Buy-Ranked Large Cap Growth Mutual Funds to Buy

Growth 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. Meanwhile, large-cap funds are an ideal investment option for investors looking for high return potential that comes with lower risk than small-cap and mid-cap funds. These funds have exposure to large cap stocks, providing long-term performance history and assuring more stability than what mid cap or small caps offer.

Below we will share with you 5 buy-rated large cap growth mutual funds . Each has earned either a Zacks Mutual Fund Rank #1 (Strong Buy) or a Zacks Mutual Fund Rank #2 (Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all large cap growth funds, investors can click here to see the complete list of funds .

Deutsche Large Cap Focus Growth S (SCQGX) invests a lion's share of its assets in securities of domestic large cap companies. SCQGX generally invests in securities of companies having market capitalizations within range of the Russell 1000 Growth Index. SCQGX may invest a maximum of 20% of its assets in foreign securities. The Deutsche Large Cap Focus Growth S fund returned 9.3% over the past one year.

SCQGX has an expense ratio of 0.97% as compared to category average of 1.18%.

Fidelity Growth Company (FDGRX) seeks capital growth over the long run. FDGRX primarily focuses on acquiring common stocks of companies that are believed to have impressive growth prospects. FDGRX invests in securities of both US and non-US companies. Factors including financial strength and economic condition are considered before investing in a company. The Fidelity Growth Company fund returned 9.1% over the past one year.

Steven S. Wymer is the fund manager and has managed FDGRX since 1997.

Waddell & Reed Tax Managed Equity A (WTEAX) invests a large chunk of its assets in equity securities of companies of high quality and that are believed to have above-average growth potential. WTEAX maintains a diversified portfolio by investing in common stocks of companies. WTEAX seeks capital appreciation and minimum taxable gains. The Waddell & Reed Tax Managed Equity A fund returned 8% over the past one year.

As of June 2015, WTEAX held 55 issues with 4.23% of its assets invested in Apple Inc.

Praxis Growth Index A (MGNDX) seeks long-term capital growth. MGNDX invests a major portion of its assets in securities of domestic large cap companies included in the Standard & Poor's 500 Growth Index. MGNDX maintains a portfolio to track the performance of fund's benchmark index. The Praxis Growth Index A fund returned 1.9% over the past one year.

Dale Snyder is the fund manager and has managed MGNDX since 2013.

T. Rowe Price Growth Stock (PRGFX) invests a large share of its assets in common stocks of companies believed to have strong growth prospect. Though PRGFX generally invests in securities of domestic companies, PRGFX may also invest in common stocks of non-US companies. The T. Rowe Price Growth Stock fund returned 9.9% over the past one year.

PRGFX has an expense ratio of 0.68% as compared to category average of 1.18%.

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 .

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. Pick the best mutual funds with the Zacks Rank.

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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 Nasdaq, Inc.


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

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