For investors looking for capital growth rather than regular current income through dividend pay outs, growth funds would be a good choice. These funds reinvest their return and focus on long term capital appreciation. Investors need to have higher tolerance to risk as their capital remains unavailable to them for a longer period of time. These funds mainly select those securities for investment that have higher growth potential and whose values are estimated to rise over the long term.
Below we will share with you the 5 best performing growth mutual funds year to date. To view the Zacks Rank and past performance of all growth funds, investors can click here to see the complete list of funds.
|Mutual Fund||Zacks Rank||Total Return YTD|
|Biondo Focus Investor|| #1 Strong Buy ||35.17%|
|Hodges|| #1 Strong Buy ||34.61%|
|Vanguard Capital Opportunity Investment|| #2 Buy ||28.34%|
|Pioneer Disciplined Growth A|| #2 Buy ||27.95%|
|PRIMECAP Odyssey Growth|| #1 Strong Buy ||27.74%|
Biondo Focus Investor (BFONX) invests in a combination of common stock of domestic companies, American Depository Receipts (ADRs) and investment grade fixed income securities. The fund may also invest in exchange-traded Funds (ETFs) and options on common stock. The fund holds long and short positions in these and other types of securities. The growth mutual fund has a three year annualized return of 9.15%.
The growth mutual fund has a minimum initial investment of $1,000 and an expense ratio of 2.55% to a category average of 1.23%.
Hodges (HDPMX) seeks capital growth on a long term basis. A majority of its assets are invested primarily in companies without regard to their market capitalization. A maximum of 25% of assets may be utilized in short-sale transactions. A portion of the fund is also invested in money market instruments. The growth mutual fund has a three year annualized return of 17.73%.
Craig Hodges is the fund manager and he has managed this growth mutual fund since 1999.
Vanguard Capital Opportunity Investor (VHCOX) invests predominantly in domestic securities with substantial earnings growth potential. It invests in securities of companies regardless of their size. The stocks selected are expected to provide returns greater than the overall market over a three to five year period. The growth mutual fund has a three year annualized return of 15.39%.
The growth mutual fund has a minimum initial investment of $3,000 and an expense ratio of 0.48% compared to a category average of 1.23%.
Pioneer Disciplined Growth A (PINDX) seeks capital growth on a long-term basis. It invests in securities issued by domestic companies, including exchange-traded funds (ETFs) and real estate investment trusts (REITs). At least 10 of its assets are invested in securities which are issued by non-domestic companies. The growth mutual fund has a three year annualized return of 19.35%.
As of June 2013, this growth mutual fund held 52 issues, with 5.68% of its total assets invested in Apple Inc.
PRIMECAP Odyssey Growth (POGRX) invests in common stocks of domestic companies, especially those with the ability to return above average growth. It focusses on investing in large and mid-cap companies. The fund also invests substantially in stocks issued by large cap firms. The growth mutual fund has a three year annualized return of 18.81%.
Joel Fried is the fund manager and he has managed this growth mutual fund since 2004.
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 at http://www.zacks.com/funds.
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