Top 5 Zacks #1 Ranked Growth Mutual Funds

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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.

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 4.38%.

The growth mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.27% compared to a category average of 1.25%.

T. Rowe Price Growth Stock (PRGFX) invests a large share of its assets in common stocks of a wide range of growth-oriented companies. The fund focuses on those companies which have higher dividend paying capacity. The growth mutual fund has a one year annualized return of 7.53%.

Robert Bartolo is the fund manager and he has managed this growth mutual fund since 2007.

Mairs & Power Growth (MPGFX) seeks appreciably high long term growth. The fund invests the majority of its assets in a wide range of common stocks. The fund may also purchase foreign securities and convertible debt rated lower than investment grade. The growth mutual fund has a one year annualized return of 18.69%.

The growth mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.70% compared to a category average of 1.11%.

Sentinel Capital Growth A (BRGRX) invests a large share of its assets in common stocks of companies which exhibit growth characteristics. A maximum of one-fourth of its assets may be invested in a particular industry. The growth mutual fund has a one year annualized return of 5.22%.

As of February 2013, this growth mutual fund held 67 issues, with 4.13% of its total assets invested in International Business Machines Corp.

Nicholas (NICSX) seeks capital growth over the long term. The fund invests the majority of its assets in common stocks which have significant growth potential. It concentrates on acquiring securities of domestic companies regardless of their sizes. The growth mutual fund has a one year annualized return of 28.23%.

Albert O. Nicholas is the fund manager and he has managed this growth mutual fund since 1969.

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.

Read the analyst report on SLGIX

Read the analyst report on PRGFX

Read the analyst report on MPGFX

Read the analyst report on BRGRX

Read the analyst report on NICSX



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