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Top 5 Growth Mutual Funds - Best of Funds

A single minded focus towards capital appreciation are what best characterize growth funds. This purity of style is further established by the fact that investors can expect few or no dividend pay outs from such mutual funds. But investing in this class of funds requires a relatively higher appetite for risk than those following a value or blend style towards investing. However, in depth research and professional management are what make mutual funds a much safer proposition as compared to directly investing in growth stocks.

Below we will share with you 5 top rated 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 growth funds, then click here.

RS Select Growth A(RSDGX) seeks capital growth by investing in small and mid-cap growth-oriented companies. The fund focuses on acquiring equity securities of companies whose market capitalizations may be at most 120% of the market cap of the largest company in the Russell 2500 Index. The growth mutual fund returned 14.14% in the last one year period.

Stephen Bishop is the fund manager and he has managed this growth mutual fund since 2007.

Prudential Jennison Growth A(PJFAX) utilizes at least 65% of its assets to invest in large and mid-cap companies. These firms must have market capitalizations greater than $1 billion and the potential for superior growth. The fund focuses on acquiring equity securities and related instruments such as common stocks, nonconvertible preferred stocks and convertible securities. The growth mutual fund has a three year annualized return of 18.13%.

The growth mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.08% compared to a category average of 1.29%.

Wells Fargo Advantage Large Cap Growth(STRFX) seeks capital growth over the long term. The fund invests the majority of its assets in large cap companies and focuses on acquiring equity securities. Not more than 25% of its assets may be used to purchase foreign securities. The growth mutual fund has a five year annualized return of 3.82%.

Bruce Olson is the fund manager and he has managed this growth mutual fund since 2002

Needham Growth(NEEGX) invests heavily in domestic equity securities. The fund focuses on sectors such as technology, healthcare, media and business and consumer services. The growth mutual fund is non-diversified and has a ten year annualized return of 5.12%.

As of September 2011, this growth mutual fund held 67 issues, with 7.70% of its total assets invested in Express Scripts.

Delaware Pooled Large-Cap Growth Equity(DPLGX) seeks capital growth. The fund invests heavily in large-cap companies. The fund selects companies which have the ability to grow their earnings significantly over the long term. It primarily purchases equity securities of large-cap companies which are included in the Russell 1000 Growth index. The growth mutual fund returned 12.12% in the last one year period. .

The growth mutual fund has an expense ratio of 0.65% compared to a category average of 1.29%.

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. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds.

View All Zacks #1 Ranked Mutual 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.


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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