Credit: Shutterstock photoWhen capital appreciation over the long term takes precedence over dividend payouts, growth funds become a natural choice for investors. These 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 top rated large 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 and past performance of all large cap growth funds, investors can click here to see the complete list of funds .
Loomis Sayles Growth A (LGRRX) seeks capital appreciation over the long run. The fund invests in equities such as common stocks and warrants of large cap companies. It may also invest, to a lesser extent, in small and mid cap companies. The fund invests in multiple numbers of sectors and industries. The large cap growth mutual fund has a five-year annualized return of 14.8%.
Aziz V. Hamzaogullari is the fund manager and has managed this fund since 2010.
Fidelity Large Cap Growth Enhanced Index (FLGEX) invests a majority of its assets in large cap companies listed in the Russell 1000 Growth Index throughout the world. It utilizes quantitative analysis of factors such as growth prospects, valuation and profitability to select firms that may provide return, higher than the index. The large cap growth mutual fund has a five-year annualized return of 15.4%.
The fund has an expense ratio of 0.45% as compared to category average of 1.20%.
Dreyfus Large Cap Growth A (DAPAX) seeks capital growth over the long term. The fund invests a major portion of its assets in large cap companies having market capitalization of more than $5 billion. It invests in companies having impressive earnings growth potential. It may invest a maximum of 20% of its assets in options. The large cap growth mutual fund has a five-year annualized return of 14.4%.
As of February 2015, this fund held 75 issues with 7.18% of its assets invested in Apple Inc.
Glenmede Large Cap Growth (GTLLX) invests a lion's share of its assets in domestic large cap firms having market capitalizations similar to those included in the Russell 1000 Index. It seeks long-term total return and focuses on acquiring common stocks of companies. The large cap growth mutual fund has a five-year annualized return of 18.2%.
The fund has an expense ratio of 0.88% as compared to category average of 1.20%.
Bridgeway Large-Cap Growth (BRLGX) seeks total return with capital growth. It invests a large chunk of its assets in large cap companies having strong growth prospects and which are traded in the U.S. Advisors select stocks on the basis of statistical analysis. The large cap growth mutual fund has a five-year annualized return of 15.9%.
As of December 2014, this fund held 91 issues with 2.69% of its assets invested in Apple Inc.
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.
