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3 Growth Mutual Funds to Buy in the Thanksgiving Week
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After collapsing in 2022, Wall Street has managed to give investors positive returns this year. The Dow, the S&P 500 and the tech-heavy NASDAQ have registered positive returns of 6.4%, 18.7% and 36.3% year to date. Stock markets registered gains after inflation in the United States showed signs of cooling in October, raising hopes that the Federal Reserve may now be less aggressive with its monetary policy.
The consumer price index (CPI) remains unchanged from the previous month at 0.4% on a seasonally adjusted basis mostly due to a decline in the price of gasoline. The annual rise in underlying inflation was the smallest in two years. For 12 months through October, CPI climbed 3.2% after rising 3.7% in September before seasonal adjustment.
Also, the producer price index (PPI), which measures wholesale inflation, recorded the biggest monthly decline since Apr 2020. PPI for the month of October declined 0.5% against the street’s expectation of a 0.1% increase. On a yearly basis, PPI posted a 1.3% increase, down from 2.2% in September, suggesting that the worst of the inflation surge may have passed.
Although the Federal Reserve’s inflation target of 2% is far from met, investors are expecting the central bank to be less hawkish and, in the process, reduce the borrowing cost. Investors are still worried as the Fed has kept the door open for further rate hikes or can keep the interest rate high for longer to win the inflation battle.
Additionally, ahead of the holiday season, especially during the Thanksgiving week, the stock market has historically performed well. Thus, investors who prefer capital appreciation over dividend payouts may consider investing in growth mutual funds having exposure to large, mid and small-cap stocks that are projected to rise in value over the long term.
By the way, these funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), positive three-year and five-year annualized returns, and minimum initial investments within $5000. They also carry a low expense ratio compared to the category average.
Fidelity New Millennium Fund (FMILX - Free Report) invests most of its net assets in common stocks of small and medium-sized companies with either growth or value or sometimes both characteristics. FMILX advisors invest in those companies that may benefit from changes in technological advances, product innovation, economic plans, demographics, social attitudes and other factors.
Daniel Sherwood has been the lead manager of FMILX since Oct 19, 2022. Most of the fund’s exposure is in companies like Microsoft (6.6%), Apple (4.9%) and Nvidia (3.1%) as of 8/31/2023.
FMILX’s three-year and five-year annualized returns are nearly 17.5% and 11% respectively. FMILX has a Zacks Mutual Fund Rank #1 (Strong Buy) and an annual expense ratio of 0.86% compared to the category average of 0.94%.
To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Bridgeway Aggressive Investors (BRAGX - Free Report) fund invests most of its net assets in common stocks of companies irrespective of their size that are listed on the New York Stock Exchange, NYSE American and NASDAQ. BRAGX advisors may also invest in stocks for which there is relatively low market liquidity, as periodically determined by the adviser based on the stock's trading volume.
John N.R. Montgomery has been the lead manager of BRAGX since Aug 4, 1994, and most of the fund’s exposure is in companies like Microsoft (3.7%), Apple (3.3%) and Penumbra (2.1%) as of 6/30/2023.
BRAGX’s three-year and five-year annualized returns are 5.5% and 3.9%, respectively. BRAGX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.32% compared to the category average of 0.84%.
Fidelity Growth Strategies (FAGKX - Free Report) fund invests most of its net assets in common stocks, preferably of domestic and foreign mid-cap companies. FAGKX advisors invest in companies that they believe have the potential for accelerated earnings or revenue growth.
Jean Park has been the lead manager of FAGKX since Aug 15, 2013, and most of the fund’s exposure is in companies like ON Semiconductor (2.9%), Old Dominion Freight Line (2.7%) and Mettler-Toledo International (2.7%) as of 8/31/2023.
FAGKX’s three-year and five-year annualized returns are 1.9% and 8.7%, respectively. FAGKX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.61% compared to the category average of 1.09%.
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3 Growth Mutual Funds to Buy in the Thanksgiving Week
After collapsing in 2022, Wall Street has managed to give investors positive returns this year. The Dow, the S&P 500 and the tech-heavy NASDAQ have registered positive returns of 6.4%, 18.7% and 36.3% year to date. Stock markets registered gains after inflation in the United States showed signs of cooling in October, raising hopes that the Federal Reserve may now be less aggressive with its monetary policy.
The consumer price index (CPI) remains unchanged from the previous month at 0.4% on a seasonally adjusted basis mostly due to a decline in the price of gasoline. The annual rise in underlying inflation was the smallest in two years. For 12 months through October, CPI climbed 3.2% after rising 3.7% in September before seasonal adjustment.
Also, the producer price index (PPI), which measures wholesale inflation, recorded the biggest monthly decline since Apr 2020. PPI for the month of October declined 0.5% against the street’s expectation of a 0.1% increase. On a yearly basis, PPI posted a 1.3% increase, down from 2.2% in September, suggesting that the worst of the inflation surge may have passed.
Although the Federal Reserve’s inflation target of 2% is far from met, investors are expecting the central bank to be less hawkish and, in the process, reduce the borrowing cost. Investors are still worried as the Fed has kept the door open for further rate hikes or can keep the interest rate high for longer to win the inflation battle.
Additionally, ahead of the holiday season, especially during the Thanksgiving week, the stock market has historically performed well. Thus, investors who prefer capital appreciation over dividend payouts may consider investing in growth mutual funds having exposure to large, mid and small-cap stocks that are projected to rise in value over the long term.
Moreover, mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
By the way, these funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), positive three-year and five-year annualized returns, and minimum initial investments within $5000. They also carry a low expense ratio compared to the category average.
Fidelity New Millennium Fund (FMILX - Free Report) invests most of its net assets in common stocks of small and medium-sized companies with either growth or value or sometimes both characteristics. FMILX advisors invest in those companies that may benefit from changes in technological advances, product innovation, economic plans, demographics, social attitudes and other factors.
Daniel Sherwood has been the lead manager of FMILX since Oct 19, 2022. Most of the fund’s exposure is in companies like Microsoft (6.6%), Apple (4.9%) and Nvidia (3.1%) as of 8/31/2023.
FMILX’s three-year and five-year annualized returns are nearly 17.5% and 11% respectively. FMILX has a Zacks Mutual Fund Rank #1 (Strong Buy) and an annual expense ratio of 0.86% compared to the category average of 0.94%.
To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Bridgeway Aggressive Investors (BRAGX - Free Report) fund invests most of its net assets in common stocks of companies irrespective of their size that are listed on the New York Stock Exchange, NYSE American and NASDAQ. BRAGX advisors may also invest in stocks for which there is relatively low market liquidity, as periodically determined by the adviser based on the stock's trading volume.
John N.R. Montgomery has been the lead manager of BRAGX since Aug 4, 1994, and most of the fund’s exposure is in companies like Microsoft (3.7%), Apple (3.3%) and Penumbra (2.1%) as of 6/30/2023.
BRAGX’s three-year and five-year annualized returns are 5.5% and 3.9%, respectively. BRAGX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.32% compared to the category average of 0.84%.
Fidelity Growth Strategies (FAGKX - Free Report) fund invests most of its net assets in common stocks, preferably of domestic and foreign mid-cap companies. FAGKX advisors invest in companies that they believe have the potential for accelerated earnings or revenue growth.
Jean Park has been the lead manager of FAGKX since Aug 15, 2013, and most of the fund’s exposure is in companies like ON Semiconductor (2.9%), Old Dominion Freight Line (2.7%) and Mettler-Toledo International (2.7%) as of 8/31/2023.
FAGKX’s three-year and five-year annualized returns are 1.9% and 8.7%, respectively. FAGKX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.61% compared to the category average of 1.09%.
Want key mutual fund info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>