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 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.

Prudential Jennison Growth A (PJFAX - MF report) utilizes at least 65% of its assets to acquire equity and related securities of large and mid-cap companies. These firms must have market capitalizations greater than $1 billion and the potential for superior growth. The growth mutual fund has a three year annualized return of 15.03%.

The growth mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.08% compared to a category average of 1.27%.

Wells Fargo Advantage Growth (SGROX - MF report) seeks long term capital appreciation by investing the majority of its assets in equity securities. Not more than 25% of its assets may be utilised to purchase foreign equity securities. The growth mutual fund has a three year annualized return of 25.3%.

Thomas Ognar is the fund manager and he has managed this growth mutual fund since 2002.

JPMorgan Large Cap Growth A (OLGAX - MF report) invests heavily in equity securities that have the potential for above average growth. The fund focuses on companies with large market capitalization which are within the market capitalization range of the Russell 1000 Growth Index. The growth mutual fund has a three year annualized return of 20.02%.

As of April 2012, this growth mutual fund held 68 issues, with 8.41% of its total assets invested in Apple, 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 13.06%.

The growth mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.08% compared to a category average of 1.29%.

John Hancock 2 Capital Appreciation 1 (JICPX - MF report) invests a minimum of 65% of its assets in equity securities of companies that have a market capitalization of more than $1 billion. The fund selects companies that have favorable growth prospects. It may invest a small portion of its assets in equity securities of foreign companies. The growth mutual fund has a three year annualized return of 18.14%.

Spiros A. Segalas is the fund manager and he has managed this growth mutual fund since 2005.

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.