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3 Large-Cap Growth Funds to Buy on Cooling Inflation in November
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Impressive economic data has been giving a boost to investors’ confidence, which has raised hopes that the Federal Reserve may keep interest rates unaltered in its December policy meeting. This has seen markets rallying over the past month, with November emerging as the best month of the year so far.
The Dow, the S&P 500 and the Nasdaq ended 0.1%, 0.2% and 0.7% higher, respectively, last week. This came as inflation has been showing signs of a sharp decline over the past year.
CPI slowed further in November, rising 3.1% on a year-over-year basis, lower than October’s jump of 3.2%. Core CPI, which strips out the volatile energy and food prices, advanced 4% year over year in November, while it increased just 0.3% month over month.
The latest jobs data also hints at a cooling labor market. The Department of Labor said that job openings totaled 8.73 million on a seasonally adjusted annual rate, indicating a month-over-month decrease of 617,000 or 6.6%.
This figure fell short of the consensus estimate of 9.4 million, representing the lowest level of job openings since March 2021.
In contrast, the Department of Labor's report for November revealed that the U.S. economy added 199,000 nonfarm workers, surpassing the consensus estimate of 170,000. October's metric was at 150,000. However, the figure is still quite low from the record highs seen in the first quarter of this year.
Slowing inflation has raised hopes that the Fed may be done with its monetary tightening campaign and may not hike interest rates in its December policy meeting. Market participants are now expecting a 98.4% chance that the central bank will keep interest rates unaltered in its December FOMC meeting, according to the CME FedWatch tool.
3 Best Choices
Given the signals and market responses, growth-oriented mutual funds are currently regarded as attractive options for investors seeking to navigate and potentially benefit from the changing economic conditions.
As a result, we've chosen three large-cap growth funds that are worth buying. These funds have given impressive 3-year and 5-year annualized returns, boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), offer a minimum initial investment within $5,000 and carry a low expense ratio.
The question here is why investors should consider mutual funds. Reduced transaction costs and diversification of portfolios without the several commission charges that are associated with stock purchases are the primary reasons why one should be parking their money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Blue Chip Growth K6 (FBCGX - Free Report) fund invests most of its net assets in common stocks of blue-chip companies, according to Fidelity Management & Research Company LLC. FBCGX advisors generally choose to invest in large or medium market-capitalization companies.
Fidelity Blue Chip Growth K6 fund has a track of positive total returns for over 10 years. Specifically, FBCGX’s returns over the three and five-year benchmarks are 6.8% and 15.6%, respectively. The annual expense ratio of 0.46% is lower than the category average of 0.99%. FBCGX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
ClearBridge Large Cap Growth Fund (SBLGX - Free Report) seeks long-term growth of capital. SBLGX normally invests at least 80% of its net assets in the stocks of large, established companies that are dominant in their industries due to product, distribution or service strength.
ClearBridge Large Cap Growth Fund has a track of positive total returns for over 10 years. Specifically, SBLGX’s returns over the three and five-year benchmarks are 4.8% and 10.5%, respectively. The annual expense ratio of 0.73% is lower than the category average of 0.99%. SBLGX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
Victory Aggressive Growth (USAUX - Free Report) fund seeks capital appreciation. USAUX invests primarily in the common stocks of large companies that are selected for their attractive growth potential. Up to 20% of Victory Aggressive Growth’s total assets are invested in foreign securities purchased in either foreign or U.S. markets.
Victory Aggressive Growth fund has a track of positive total returns for over 10 years. Specifically, USAUX’s returns over the three and five-year benchmarks are 3.4% and 9.4%, respectively. The annual expense ratio of 0.53% is lower than the category average of 0.99%. USAUX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
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3 Large-Cap Growth Funds to Buy on Cooling Inflation in November
Impressive economic data has been giving a boost to investors’ confidence, which has raised hopes that the Federal Reserve may keep interest rates unaltered in its December policy meeting. This has seen markets rallying over the past month, with November emerging as the best month of the year so far.
The Dow, the S&P 500 and the Nasdaq ended 0.1%, 0.2% and 0.7% higher, respectively, last week. This came as inflation has been showing signs of a sharp decline over the past year.
CPI slowed further in November, rising 3.1% on a year-over-year basis, lower than October’s jump of 3.2%. Core CPI, which strips out the volatile energy and food prices, advanced 4% year over year in November, while it increased just 0.3% month over month.
The latest jobs data also hints at a cooling labor market. The Department of Labor said that job openings totaled 8.73 million on a seasonally adjusted annual rate, indicating a month-over-month decrease of 617,000 or 6.6%.
This figure fell short of the consensus estimate of 9.4 million, representing the lowest level of job openings since March 2021.
In contrast, the Department of Labor's report for November revealed that the U.S. economy added 199,000 nonfarm workers, surpassing the consensus estimate of 170,000. October's metric was at 150,000. However, the figure is still quite low from the record highs seen in the first quarter of this year.
Slowing inflation has raised hopes that the Fed may be done with its monetary tightening campaign and may not hike interest rates in its December policy meeting. Market participants are now expecting a 98.4% chance that the central bank will keep interest rates unaltered in its December FOMC meeting, according to the CME FedWatch tool.
3 Best Choices
Given the signals and market responses, growth-oriented mutual funds are currently regarded as attractive options for investors seeking to navigate and potentially benefit from the changing economic conditions.
As a result, we've chosen three large-cap growth funds that are worth buying. These funds have given impressive 3-year and 5-year annualized returns, boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), offer a minimum initial investment within $5,000 and carry a low expense ratio.
The question here is why investors should consider mutual funds. Reduced transaction costs and diversification of portfolios without the several commission charges that are associated with stock purchases are the primary reasons why one should be parking their money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Blue Chip Growth K6 (FBCGX - Free Report) fund invests most of its net assets in common stocks of blue-chip companies, according to Fidelity Management & Research Company LLC. FBCGX advisors generally choose to invest in large or medium market-capitalization companies.
Fidelity Blue Chip Growth K6 fund has a track of positive total returns for over 10 years. Specifically, FBCGX’s returns over the three and five-year benchmarks are 6.8% and 15.6%, respectively. The annual expense ratio of 0.46% is lower than the category average of 0.99%. FBCGX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
ClearBridge Large Cap Growth Fund (SBLGX - Free Report) seeks long-term growth of capital. SBLGX normally invests at least 80% of its net assets in the stocks of large, established companies that are dominant in their industries due to product, distribution or service strength.
ClearBridge Large Cap Growth Fund has a track of positive total returns for over 10 years. Specifically, SBLGX’s returns over the three and five-year benchmarks are 4.8% and 10.5%, respectively. The annual expense ratio of 0.73% is lower than the category average of 0.99%. SBLGX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
Victory Aggressive Growth (USAUX - Free Report) fund seeks capital appreciation. USAUX invests primarily in the common stocks of large companies that are selected for their attractive growth potential. Up to 20% of Victory Aggressive Growth’s total assets are invested in foreign securities purchased in either foreign or U.S. markets.
Victory Aggressive Growth fund has a track of positive total returns for over 10 years. Specifically, USAUX’s returns over the three and five-year benchmarks are 3.4% and 9.4%, respectively. The annual expense ratio of 0.53% is lower than the category average of 0.99%. USAUX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
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 >>