A single minded focus towards capital appreciation is what best characterizes 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, investors can click here to see the complete list of funds.
Franklin Flex Cap Growth A (FKCGX) seeks capital growth by primarily investing in common stocks of companies having a significant growth potential. It may invest in companies regardless of their market capitalization The growth mutual fund has a one year annualized return of 33.31%.
The growth mutual fund has a minimum initial investment of $1,000 and an expense ratio of 0.99% compared to a category average of 1.23%.
Wells Fargo Advantage Capital Growth (SLGIX) seeks capital growth over the long term. The fund invests the majority of its assets in large-cap companies. These companies must have capitalizations identical to those included in the Russell 1000 Index. Not more than 25% of its assets are utilized to purchase foreign equity securities. The growth mutual fund has a one year annualized return of 33.01%.
Michael T. Smith is the fund manager and he has managed this growth mutual fund since 2012.
Fidelity Blue Chip Growth (FBGRX) invests the majority of its assets in blue chip firms. The fund focusses on purchasing common stocks issued by prominent companies. It purchases both domestic and foreign securities. The growth mutual fund has a one year annualized return of 36.02%.
The growth mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.74% compared to a category average of 1.23%.
Transamerica Capital Growth A (IALAX) seeks significant capital growth. The fund invests in both prominent and relatively new firms which are part of the Russell 1000 Growth Index. The growth mutual fund has a one year annualized return of 43.86%.
As of September 2013, this growth mutual fund held 44 issues, with 9.37% of its total assets invested in Facebook Inc Class A.
Thornburg Core Growth A (THCGX) invests a large share of its assets in equity shares of companies which possess the ability to grow at an incremental pace. The fund may also purchase foreign equity securities as well as debt instruments. The growth mutual fund has a one year annualized return of 39.02%.
Greg M. Dunn is the fund manager and he has managed this growth mutual fund since 2012.
To view the Zacks Rank and past performance of all 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. Learn more about the Zacks Mutual Fund Rank .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>
View All Zacks #1 Ranked Mutual Funds
Get Your Free (FBGRX): Fund Analysis Report
Get Your Free (FKCGX): Fund Analysis Report
Get Your Free (IALAX): Fund Analysis Report
Get Your Free (SLGIX): Fund Analysis Report
Get Your Free (THCGX): Fund Analysis Report
To read this article on Zacks.com click here.
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.
