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.
VALIC Company I Blue Chip Growth (VCBCX) seeks capital appreciation over the long term. It invests heavily in securities of large and mid-cap blue chip growth oriented firms. The companies selected for its investment must have market capitalizations more than or identical to the smallest firm included in the Russell Midcap Index. The growth mutual fund has a one year annualized return of 12.13%.
Larry J. Puglia is the fund manager and he has managed this growth mutual fund since 2000.
GuideStone Funds Growth Equity GS2 (GGEYX) invests a large share of its assets in equity securities. It concentrates on acquiring those large and medium-sized domestic companies which have significant growth potential. It may also utilize some of its assets to invest in American Depository Receipts (ADRs) to a lesser degree. The growth mutual fund has a one year annualized return of 11.40%.
As of September 2012, this growth mutual fund held 159 issues, with 7.34% of its total assets invested in Apple Inc.
Fidelity Growth Company (FDGRX) seeks capital growth. It invests heavily in common stocks of growth-oriented companies. The fund invests in both domestic and foreign securities. It selects those securities for its investment that have significant growth potential. The growth mutual fund has a one year annualized return of 11.20%.
The growth mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.84% compared to a category average of 1.27%.
Optimum Large Cap Growth A (OALGX) invests the majority of its assets in securities of large market cap entities. The companies invested in must be identical to those included in the Russell 1000 Growth Index. The growth mutual fund has a one year annualized return of 10.78%.
Thomas F. Marsico is the fund manager and he has managed this growth mutual fund since 2003.
Wells Fargo Advantage Growth Investor (SGROX) seeks capital growth over the long term. It invests heavily in equity securities. A maximum of 25% of its assets are invested in foreign firms by purchasing American Depository Receipts (ADRs). The growth mutual fund has a one year annualized return of 10.31%.
The growth mutual fund has an expense ratio of 1.26% 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.
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