Credit: Shutterstock photoA 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.
Brown Advisory Opportunity (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 27.56% over the last one year period.
Eric Gordon is the fund manager and he has managed this growth mutual fund since 2012.
Transamerica Capital Growth A (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 has returned 39.29% over the last one year period.
The fund has an expense ratio of 1.41% as compared to category average of 1.23%.
Fidelity Blue Chip Growth (FBGRX) invests the majority of its assets in blue chip firms. The fund focuses on purchasing common stocks issued by prominent companies. It purchases both domestic and foreign securities with higher-than-average growth potential. The growth mutual fund has returned 30.38% over the last one year period.
As of December 2013, this mutual fund held 295 issues with 5.56% of its total assets invested in Google Inc.
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 equity securities as well as debt instruments of developing countries. The growth mutual fund has a one year annualized return of 31.41%.
Tim Cunningham is the fund manager and has managed the fund since 2012.
RS Mid Cap Growth A (RSMOX) invests most of its assets in companies whose market cap is not lower than $1 billion. In addition their market cap must not be higher than 1.2x of the largest company included in Russell Midcap Index. Usually, investments are made in domestic companies but a portion is invested in foreign companies. The growth mutual fund has returned 25.14% in the last one year period.
The fund has an expense ratio of 1.34% as compared to category average of 1.33%.
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 .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>
View All Zacks #1 Ranked Mutual Funds
Get Your Free (BIAOX): Fund Analysis Report
Get Your Free (FBGRX): Fund Analysis Report
Get Your Free (IALAX): Fund Analysis Report
Get Your Free (RSMOX): Fund Analysis Report
Get Your Free (THCGX): Fund Analysis Report
To read this article on Zacks.com click here.
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.
