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Mutual Fund Commentary

When capital appreciation over the long term takes precedence over dividend payouts, growth funds become a natural choice for investors. These funds focus on realizing an appreciable amount of capital growth by investing in stocks of firms whose value is projected to rise over the long term. However, a 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 they may experience relatively more fluctuations than other fund classes.

Below we will share with you the 5 best performing growth mutual funds year to date. To view the Zacks Rank and past performance of all growth funds, then click here.

Delaware Pooled Select 20 (DPCEX - MF report) focuses on acquiring common stocks of firms with the ability to deliver superior growth at a pace exceeding that of the U.S. economy. The fund holds a portfolio of 15 to 25 equity securities. The growth mutual fund returned 14.57% over the last one year period.

Jeffrey S. Van Harte is the fund manager has managed this growth mutual fund since 2005.

GMO US Growth III seeks capital appreciation over the long term. The fund primarily invests in equity securities which are expected to provide returns exceeding that of the Russell 1000 Growth Index. The fund may utilize underlying funds and derivatives to invest in such equity securities. It allocates a large portion of its assets to investments with economic linkages to the U.S. The growth mutual fund returned 12.82% over the last one year period.

The growth mutual fund has an expense ratio of 0.46% compared to a category average of 1.28%.

Delaware Pooled Large-Cap Growth Equity (DPLGX - MF report) invests the majority of its assets in common stocks of large cap companies. These firms must have market capitalizations identical to those included in the Russell 1000 Growth Index. The growth mutual fund returned 8.04% over the last one year period.

Jeffrey S. Van Harte is the fund manager has managed this growth mutual fund since 2005.

Delaware US Growth A (DUGAX) seeks capital growth over the long term. The fund focuses on investing in growth oriented companies that will grow at a rate faster than the U.S. economy. Not more than 20% of its assets may be invested in debt securities. The growth mutual fund returned 7.73% over the last one year period.

As of September 2011, this growth mutual fund held 30 issues, with 7.88% of its total assets invested in Apple, Inc.

Pioneer Fundamental Growth A (PIGFX - MF report) invests the majority of its assets in large companies. These firms must be identical to those included in the Russell 1000 Growth Index. However, it may also invest in securities not included in the index. The growth mutual fund returned 6.32% over the last one year period.

The growth mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.25% compared to a category average of 1.28%.

To view the Zacks Rank and past performance of all growth mutual 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.

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