Invest in These 3 Large-Cap Growth Funds for Stellar Returns
Growth funds offer incremental gains on capital by investing in stocks of companies that are projected to rise in value over the long term. However, a relatively higher tolerance for risk is a prerequisite other than the willingness to park money for a long period of time while 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.
Fidelity Advisor Series Growth Opportunities Fund FAOFX aims for capital appreciation. The fund invests in common stocks of companies that the manager believes have above-average growth potential. FAOFX invests in domestic and foreign issuers and has returned 37.6% over the past three years.
As of the end of Aug 2020, FAOFX held 242 issues with 9.62% of its assets invested in Microsoft Corp.
JPMorgan Large Cap Growth Fund Class A OLGAX aims for capital growth over a long period. The fund invests the majority of its assets in securities of well-established, large-capitalization companies that have the potential for good growth ahead. OLGAX has returned 30.3% over the past three years.
OLGAX has an expense ratio of 0.94% compared with the category average of 1.05%.
PGIM Jennison Focused Growth Fund-Class Z SPFZX aims for long-term growth of capital. The fund invests the majority of its total assets on equity and equity-related securities of companies that the fund manager believes have strong capital appreciation potential. This non-diversified fund primarily invests are common stocks, non-convertible preferred stocks and convertible securities. SPFZX has returned 29.3% over the past three years.
Kathleen A. McCarragher is one of the fund managers of SPFZX since 2000.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.