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.

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 38.81%.

The growth mutual fund has a minimum initial investment of $5,000 and an expense ratio of 1.45% 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 33.36%.

Michael T. Smith is the fund manager and he has managed this growth mutual fund since 2012.

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 34.89%.

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 1.23%.

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 32.76%.

As of October 2013, this growth mutual fund held 49 issues, with 4.08% of its total assets invested in Valspar Corporation.

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 33.51%.

Conrad B. Herrmann is the fund manager and he has managed this growth mutual fund since 1993.

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.

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Read the analyst report on THCGX

Read the analyst report on SLGIX

Read the analyst report on PRGFX

Read the analyst report on MPGFX

Read the analyst report on FKCGX


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