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Top 5 Growth Funds
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ShareWhen capital growth takes precedence over the need for regular income growth funds could be the ideal choice for investors. Growth funds usually invest in companies whose stocks are underpriced relative to their intrinsic value. Investing in this category, therefore, requires a longer investment horizon and a higher tolerance for risk. This is because growth stocks may experience more fluctuations than other fund classes.
Below we will share with you 5 top rated growth funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all growth funds, then click here.
Goldman Sachs Growth Opportunities A (GGOAX) invests at least 90% of its assets in equity securities. The fund focuses on acquiring mid-cap stocks and looks at purchasing publicly traded domestic securities. Up to 25% of its assets may be invested in foreign securities, including those issued from emerging markets. The fund has a five year annualized return of 6.37%.
The growth fund has a minimum initial investment of $1,000 and an expense ratio of 1.45% compared to a category average of 1.47%.
Fidelity Mid Cap Growth (FSMGX) seeks capital appreciation over the long term. At least 80% of its assets are invested in mid-cap companies identical to those in the Russell Midcap index or S&P MidCap 400 index. It may also consider for investment companies with smaller or larger market capitalizations. It is a no load fund and invests in both domestic and foreign securities.
The growth fund returned 64.78% in the last one year period.
Van Kampen Equity Growth A (VEGAX) invests in growth-oriented securities of medium and large-cap companies. These would include stocks, convertibles and other securities which have equity-like features. The growth fund returned in 71.5% in the last one year period and has a five year annualized return of 7.54%.
As of December 2009, this growth fund held 33 issues, with 6.70% of its total assets invested in Amazon.com, Inc.
Ariel Appreciation (CAAPX) seeks long-term capital growth. It invests in medium-sized companies with market capitalizations between $2.5 billion and $15 billion. The fund seeks out undervalued companies and may invest a small proportion of its assets in foreign companies. The fund has a ten year annualized return of 8.3%.
Matthew F. Sauer is the fund manager and he has managed this fund since 2006.
Turner Midcap Growth Investor (TMGFX) invests the majority of its assets in equity securities of domestic mid-cap companies. It focuses on common stocks and seeks out firms with diversified operations across different economic sectors. Not more than 5% of its assets may be invested in a single issuer. The fund returned 66.8% in the last one year period.
The growth fund has a minimum initial investment of $2,500 and an expense ratio of 1.18% compared to a category average of 1.47%.
To view the Zacks Rank and past performance of all growth funds, then click here.
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 at http://www.zacks.com/funds/mutualfund/
Read the full analyst report on GGOAX
Read the full analyst report on FSMGX
Read the full analyst report on VEGAX
Read the full analyst report on CAAPX
Read the full analyst report on TMGFX
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| Market Summary | May 26, 2012 08:03 am ET |
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