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3 Top-Ranked Large-Cap Growth Funds for Spectacular Returns

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Large-cap funds are ideal investment options for those who seek high returns accompanied by lesser risk than small-cap and mid-cap funds. These funds have exposure to large-cap stocks with a long-term performance history, assuring more stability than what mid or small caps offer.

Additionally, growth funds focus on realizing an appreciable amount of capital growth by investing in stocks of firms, the value of which is projected to rise over the long term. However, 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 these may experience relatively greater fluctuation than the other fund classes.

Below we share with you three top-ranked large-cap growth mutual funds. Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of all the large-cap growth mutual funds.

Vanguard U.S. Growth Fund Investor Shares (VWUSX - Free Report) aims for long-term capital appreciation. The fund invests in large-capitalization stocks of U.S. companies, which according to the fund manager has above-average earnings growth potential and reasonable stock prices in comparison with expected earnings. VWUSX has returned 24.1% over the past three years.

As of the end of June 2020, VWUSX held 258 issues with 7.73% of its assets invested in Amazon.com Inc.

Principal Blue Chip Fund Class A (PBLAX - Free Report) aims for long-term growth of capital. The fund invests the majority of its assets in equity securities of companies with large market capitalizations at the time of purchase that the fund manager considers as displaying characteristics of a "blue chip" company. PBLAX has returned 22.4% over the past three years.

K. William Nolin is one of the fund managers of PBLAX since 2012.

DWS Capital Growth Fund - Class A (SDGAX - Free Report) aims for long-term growth of capital. The fund invests the more than half of its assets in equities, mainly common stocks of U.S. companies that are similar in size to the companies on the S&P 500A Index or the Russell 1000A Growth Index. SDGAX has returned 20.1% over the past three years.

SDGAXhas an expense ratio of 0.94% compared with the category average of 1.05%.

To view the Zacks Rank and past performance of all large-cap growth mutual funds, investors can click here to see the complete list of funds.

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