Top 5 Zacks #1 Ranked Growth Mutual Funds
Investors with a relatively higher tolerance for risk as well as a longer investment horizon are ideally suited to invest in growth funds. This category of funds has capital growth as its primary goal but provides few if any dividend payouts to investors. It selects companies with the potential to deliver superior growth in revenue and earnings often achieving their goals by reinvesting profits into expansions and acquisitions. Such investments may experience higher volatility relative to value and blend funds, but still have a lower risk component compared to funds investing in specific sectors such as technology or real estate.
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.
Goldman Sachs Growth Opportunities A (GGOAX) invests at least 90% of its assets in equity securities. The fund focuses on acquiring mid-cap stocks and looks at purchasing publicly traded domestic securities. The growth mutual fund has a ten year annualized return of 8.35%.
Scott G. Kolar is the fund manager and he has managed this growth mutual fund since 2011.
Wells Fargo Advantage Capital Growth (SLGIX) seeks capital appreciation over the long term. The fund invests the majority of its assets in large-cap companies. Not more than 25% of its assets are utilized to purchase foreign equity securities. The growth mutual fund has a ten year annualized return of 5.39%.
As of June 2012, this growth mutual fund held 70 issues, with 9.26% of its total assets invested in Apple, Inc.
Westcore MIDCO Growth (WTMGX) primarily invests in stocks of medium-sized companies with significant growth potential. The majority of its assets are invested in mid-cap companies with market capitalizations similar to those included in the Russell Mid-cap Growth index. The growth mutual fund has a ten year annualized return of 5.38%.
The growth mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.06% compared to a category average of 1.37%.
Legg Mason ClearBridge Large Cap Growth A (SBLGX) seeks long-term capital appreciation. The majority of the fund’s assets are utilized to purchase equity securities or instruments with similar features. The companies invested in must be identical to those included in the Russell 1000 Growth Index. The growth mutual fund has a ten year annualized return of 4.97%.
Peter Bourbeau is the fund manager and he has managed this growth mutual fund since 2009.
Delaware US Growth A (DUGAX) invests heavily in common stocks of companies with the ability to deliver long term capital growth. The majority of its assets are invested in domestic securities. Not more than 20% of its assets are utilized to purchase bonds and other debt securities. The growth mutual fund has a ten year annualized return of 4.72%.
The growth mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.10% compared to a category average of 1.27%.
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 GGOAX
Read the analyst report on SLGIX
Read the analyst report on WTMGX
Read the analyst report on SBLGX
Read the analyst report on DUGAX
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