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.
Needham Growth (NEEGX) invests a minimum of 65% of its assets in domestic companies listed on the Nasdaq or other nationally recognized securities exchanges. Investments are made in many sectors. The growth mutual fund has a one year annualized return of 13.75%.
The growth mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.82% compared to a category average of 1.34%.
PRIMECAP Odyssey Growth (POGRX) seeks capital growth over the long term. The fund invests the majority of its assets in domestic mid cap or large cap companies which has the potential for above average growth. Some portion of its assets can also be invested in small cap companies. The growth mutual fund has a one year annualized return of 29.19%.
Coralie Witter is the fund manager and he has managed this growth mutual fund since 2010.
RS Mid Cap Growth A (RSMOX) invests most of its assets in companies whose market cap is not lower than $1 billion. In addition their market cap must not be higher than 1.2x of the largest company included in Russell Midcap Index. Usually, investments are made in domestic companies but a portion is invested in foreign companies. The growth mutual fund has a one year annualized return of 25.76%.
The growth mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.34% compared to a category average of 1.34%.
Hartford Midcap A (HFMCX) seeks capital growth on a long term basis. The fund invests majority of its assets in mid cap companies. Parameters such as return on equity, a strong balance sheet and quality of management are considered before investments are made. The growth mutual fund has a one year annualized return of 18.75%.
As of July 2013, this growth mutual fund held 106 issues, with 2.48% of its total assets invested in Genpact Ltd
Brown Advisory Opportunity (BIAOX) invests the majority of its assets in equity of companies which are prominent in their respective sectors. A maximum of 20% of its assets may be invested in securities of foreign companies including the ones from emerging markets. The growth mutual fund has a one year annualized return of 25.56%.
Eric Gordon 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 RankRead the analyst report on NEEGXRead the analyst report on POGRXRead the analyst report on RSMOXRead the analyst report on HFMCXRead the analyst report on BIAOX
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