Zacks #1 Ranked Growth Mutual Funds

Zacks

When capital appreciation over the long term takes precedence over dividend payouts, growth funds become a natural choice for investors. These funds focus on realizing an appreciable amount of capital growth by investing in stocks of firms whose value is projected to rise over the long term. However, a relatively higher tolerance to risk and the willingness to park funds for the longer term are necessary when investing in these securities. This is because they may experience relatively more fluctuations than other fund classes.

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.

Aquila Three Peaks Opportunity Growth A (ATGAX) invests a minimum of 70% of its assets in equity of companies which are capable of delivering capital growth. Investments are made in securities regardless of it being a growth or value in nature. The growth mutual fund has a one year annualized return of 38.72%.

The growth mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.53% compared to a category average of 1.35%.

Amana Growth (AMAGX) seeks capital growth on a long term basis. Investments are made based on Islamic principles. The fund invests the majority of its assets in common stocks. Companies having a track record of growing faster than the economy are mostly favored for investments. The growth mutual fund has a one year annualized return of 14.95%.

Nicholas Kaiser is the fund manager and he has managed this growth mutual fund since 1994.

Hartford Capital Appreciation II A (HCTAX) invests a minimum of 65% of its assets in companies regardless of market cap. A maximum of 35% is invested in securities issued by foreign companies, inclusive of those whose primary business activities are conducted in emerging markets. The growth mutual fund has a one year annualized return of 33.01%.

The growth mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.32% compared to a category average of 1.12%.

Needham Growth (NEEGX) invests a minimum of 65% of its assets in domestic companies listed on Nasdaq or nationally recognized securities exchange. Investments are made in many sectors. The growth mutual fund has a one year annualized return of 19.98%.

As of March 2013, this growth mutual fund held 61 issues, with 9.92% of its total assets invested in Express Scripts

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 to grow above average. A portion of investment can also be made in small cap companies. The growth mutual fund has a one year annualized return of 37.44%.

Joel P. 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.

Read the analyst report on ATGAX

Read the analyst report on AMAGX

Read the analyst report on HCTAX

Read the analyst report on NEEGX

Read the analyst report on POGRX

Read the analyst report on



View All Zacks #1 Ranked Mutual Funds

Zacks Investment Research



More From Zacks.com
View Comments (0)