#1 Ranked Growth Mutual Funds By Zacks Investment Research
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.
Fidelity Blue Chip Growth (MUTF:FBGRX) invests the majority of its assets in blue chip firms. The fund focusses on purchasing common stocks issued by prominent companies. It purchases both domestic and foreign securities. The growth mutual fund returned 37.41% over the last one year period.
The growth mutual fund has an expense ratio of 0.74% compared to a category average of 1.23%.
Transamerica Capital Growth A (MUTF:IALAX) seeks significant capital growth. The fund invests in both prominent and relatively new firms which are part of the Russell 1000 Growth Index. The growth mutual fund returned 41.94% over the last one year period.
Dennis P. Lynch is the fund manager and he has managed this growth mutual fund since 2011.
RS Growth A (MUTF:RSGRX) invests primarily in securities issued by companies that it classifies as those with large capitalizations. According to its management team, such companies must have a market capitalization not lower than $1 billion and not higher than that of the largest company which is part of the Russell 1000 Index. The growth mutual fund returned 37.23% over the last one year period.
The growth mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.37% compared to a category average of 1.23%.
Brown Advisory Opportunity (MUTF:BIAOX) seeks capital growth over the long term. The fund invests heavily 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 returned 41.35% over the last one year period.
As of September 2013, this growth mutual fund held 76 issues, with 2.86% of its total assets invested in Apple, Inc.
Lord Abbett Growth Leaders A (MUTF:LGLAX) invests a large share of its assets in equity securities of growth oriented companies. The fund may invest in both domestic and foreign equity securities. A minimum of half of its net assets must be invested in companies which are part of the Russell 1000 Index. The growth mutual fund returned 43.68% over the last one year period.
Arthur K. Weise is the fund manager and he has managed this growth mutual fund since 2011.
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