Credit: Shutterstock photoWhen 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 large cap 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 large cap growth funds, investors can click here to see the complete list of funds .
Thrivent Large Cap Growth A (AAAGX) seeks capital appreciation over the long run. It invests a lion's share of its assets in domestic large cap companies having market capitalizations similar to those included in the S&P 500/ Citigroup Growth Index, the Russell 1000 Growth Index, or large cap companies published by Lipper, Inc. It primarily invests in common stocks and not necessarily invests in convertible securities. The large cap growth mutual fund returned almost 14% in the last one year. David C. Francis is the fund manager and has managed this fund since 2011.
American Century Legacy Focused Large Cap Advisor (ACFDX) invests a major portion of its assets in large cap companies as mentioned by Morningstar. The fund maintains a smaller portfolio of stocks when compared to the American Century Legacy Large Cap Fund. The non-diversified large cap growth mutual fund returned 13.6% in the last one year.
As of September 2014, this fund held 46 issues with 3.32% of its assets invested in Actavis PLC
ClearBridge Aggressive Growth A (SHRAX) seeks long-term capital growth. The fund invests in growth companies that may or are already witnessing earnings growth higher than that of firms in the S&P 500 Index. It invests in prominent and big companies whose earnings are expected to accelerate in the long run. The large cap growth mutual fund returned 17.5% in the last one year.
The fund has an expense ratio of 1.15% as compared to category average of 1.20%.
Cavanal Hill US Large Cap Equity A (AAEQX) invests a large portion of its assets in domestic large cap companies. It focuses on acquiring stocks of those companies having market capitalizations greater than $7 billion. The large cap growth mutual fund returned 15% in the last one year.
As of September 2014, this fund held 60 issues with 4.06% of its assets invested in Apple Inc
Bridgeway Large-Cap Growth (BRLGX) seeks total return with capital growth. It invests a major portion of its assets in large cap companies having strong growth prospects and which are traded in the U.S. Advisors select stocks on the basis of statistical analysis. The large cap growth mutual fund returned 21.7% in the last one year.
The fund has an expense ratio of 0.84% as compared to category average of 1.20%.
To view the Zacks Rank and past performance of all large cap growth mutual funds, investors 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 in our Mutual Fund Center .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
