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Mutual Fund Commentary

A single minded focus towards capital appreciation are what best characterize growth funds. This purity of style is further established by the fact that investors can expect few or no dividend pay outs from such mutual funds. But investing in this class of funds requires a relatively higher appetite for risk than those following a value or blend style towards investing. However, in depth research and professional management are what make mutual funds a much safer proposition as compared to directly investing in growth stocks.

Below we will share with you 5 top rated growth mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all growth funds, investors can click here to see the complete list of funds.

American Century Equity Growth (BEQGX - MF report) seeks long term capital appreciation. The fund invests the majority of its assets in equity securities. It focuses on investing in large-cap companies whose shares are publicly traded in the U.S. The growth mutual fund has a three year annualized return of 12.8%.

The growth mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.69% compared to a category average of 1.12%.

Thornburg Core Growth A (THCGX - MF report) invests a large share of its assets in domestic growth oriented equity securities. The fund may purchase foreign equity securities as well as debt instruments. The growth mutual fund has a three year annualized return of 17.37%. p> As of November 2011, this growth mutual fund held 41 issues, with 4.17% of its total assets invested in Amazon.com Inc.

Pioneer Fundamental Growth A (PIGFX - MF report) seeks capital appreciation over the long term. The fund invests a large share of its assets in equity securities of large cap companies which are identical to those included in the Russell 1000 Growth Index. The growth mutual fund has a three year annualized return of 14.25%.

Timothy Mulrenan is the fund manager and he has managed this growth mutual fund since 2007.

Delaware US Growth A (DUGAX - MF report) invests heavily in common stocks of companies with the ability to deliver long term capital growth. The majority of its assets are invested in domestic securities. Not more than 20% of its assets are utilized to purchase bonds and other debt securities. The growth mutual fund has a three year annualized return of 20.93%.

The growth mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.10% compared to a category average of 1.28%.

Needham Growth (NEEGX - MF report) seeks capital growth. At least 65% of the fund’s assets are invested in domestic equity securities. The fund focuses on sectors such as technology, healthcare, media and business and consumer services. The growth mutual fund has a three year annualized return of 19.78%.

John Barr, this funds' manager, has managed this growth mutual fund since 2010.

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

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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