Growth funds focus on realizing an appreciable amount of capital growth by investing in stocks of firms, the value of which is projected to rise over the long term. However, 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 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 .
Commerce GrowthCFGRX seeks growth of capital. CFGRX invests a minimum of 65% of its assets in common stocks of companies that witnessed lower-than-average price volatility in the past. The fund may also invest a major portion of its assets in the technology sector. The fund normally invests in common stocks issued by companies whose characteristics can be compared to those that are included on the Russell 1000 Growth Index. Commerce Growth has returned 21% in the last one-year time frame.
CFGRX has an expense ratio of 0.79% compared with the category average of 1.10%.
Wells Fargo Premier Large Company Growth R6EKJFX invests a large chunk of its assets in equity securities of large-cap companies and around one-fifth of its assets in equity securities of foreign companies. The fund invests mainly in those large-cap companies that are included on the Russell 1000 Index. Wells Fargo Premier Large Company Growth R6 has one-year annualized returns of 32.3%.
As of Feb 28, 2018, EKJFX held 85 issues with 7.09% of its assets invested in Amazon.com Inc.
Laudus U.S. Large Cap GrowthLGILX seeks capital growth for the long run. LGILX invests a bulk of its assets in equity securities of U.S. large cap companies whose market-cap is higher than $3 billion. Additionally, up to 20% of the fund's assets may be invested in foreign equity securities. Laudus U.S. Large Cap Growth has returned 33% in the last one-year time frame.
Lawrence G. Kemp is the fund manager of LGILX since 2013.
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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