With few dividend payouts, or none at all, companies whose stocks make up the portfolio of a growth fund focus almost exclusively on capital growth. These firms exhibit superior earnings growth, continuously investing them into expansions, acquisitions and research and development. Compared to the value and blend categories, this class of funds carry a relatively higher risk component. Reaping the maximum benefit from them also requires a longer investment horizon, between five to ten years. However, with the benefits of widely diversified portfolios and expert management, they are still less risky then sectoral funds.
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.
Glenmede Large Cap Growth (GTLLX - MF report) seeks significantly high total return over the long term. The majority of the fund’s assets are invested in 50 to 90 domestic large cap companies. The fund focuses on purchasing equity securities, such as common stocks. The growth mutual fund returned 7.48% in the last one year period.
Paul T. Sullivan is the fund manager and he has managed this growth mutual fund since 2004.
Mairs & Power Growth (MPGFX - MF report) invests the majority of its assets in common stocks. The fund may also purchase foreign securities and convertible debt rated lower than investment grade. It holds a wide range of equity securities in order to reduce portfolio turnover and manage risk. The growth mutual fund returned 5.84% in the last one year period.
As of December 2011, this growth mutual fund held 46 issues, with 4.80% of its total assets invested in 3M Company.
Wells Fargo Advantage Growth (SGROX - MF report) seeks long term capital appreciation by investing majority of its assets in US equity securities. Not more than 25% of its assets may be utilized to purchase foreign equity securities. The growth mutual fund returned 12.18% in the last one year period.
The growth mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.31% compared to a category average of 1.28%.
ING Growth Opportunities A (NLCAX - MF report) invests a large proportion of its assets in domestic companies with the potential for superior growth. Not more than 15% of its assets may be utilized to purchase foreign securities. The growth mutual fund returned 8.51% in the last one year period.
Jeff F. Bianchi is the fund manager and he has managed this growth mutual fund since 2009.
Delaware Pooled Large-Cap Growth Equity (DPLGX - MF report) seeks capital growth. The fund invests heavily in large-cap companies. The fund selects companies which have the ability to grow their earnings significantly over the long term. It primarily purchases equity securities of large-cap companies which are included in the Russell 1000 Growth index. The growth mutual fund returned 9.41% in the last one year period. .
The growth mutual fund has an expense ratio of 0.64% compared to a category average of 1.28%.
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.