Back to top

Best of Funds

Investors willing to forgo current income for capital appreciation would do well to consider growth funds. These funds focus on reaping the maximum possible capital gains by investing in stocks of companies whose value is projected to increase appreciably over time. Tolerance for a reasonable amount of risk and a long-term approach to investing is required in this case. However, the risk involved is much lower when compared to sectoral funds and may be reduced further by funds with a conservative approach.

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, investors can click here to see the complete list of funds.

Mutual Fund

Zacks Rank

Total Return YTD

Matthew 25

#1 Strong Buy

18.9%

Hennessy Cornerstone Growth

#1 Strong Buy

18.8%

Artisan Growth Opportunities

#1 Strong Buy

15.1%

Baron Fifth Avenue Growth Retail

#1 Strong Buy

13.4%

T. Rowe Price Growth Stock

#1 Strong Buy

13.3%

 

Matthew 25 (MXXVX - MF report) seeks capital growth over the long term. The fund invests in a wide range of listed companies which meet the exacting qualities it requires. Not more than 25% of its assets may be utilized to purchase bonds. The growth mutual fund returned 19.03% in the last one year period.

The growth mutual fund has a minimum initial investment of $10,000 and an expense ratio of 1.22% compared to a category average of 1.27%.

Hennessy Cornerstone Growth (HFCGX - MF report) invests in common stocks of companies with a strong growth orientation. The fund’s portfolio consists of 50 common stocks selected using a quantitative technique known as the Cornerstone Growth Strategy. The growth mutual fund returned -3.14% in the last one year period.

Neil J. Hennessy is the fund manager and he has managed this growth mutual fund since 2000.

Artisan Growth Opportunities (ARTRX - MF report) seeks capital appreciation over the long term. The fund focuses on investing in equity securities issued by domestic and foreign companies. The fund invests in both mature economies and emerging markets and may purchase depository receipts. The growth mutual fund returned -.97% in the last one year period.

The growth mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.40% compared to a category average of 1.42%.

Baron Fifth Avenue Growth Retail (BFTHX - MF report) focuses on acquiring common stock of large-cap companies. These firms must be growth oriented and have capitalizations in excess of $5 billion when the stock is purchased. It aims to invest in securities which could double their value in a five-year period. The growth mutual fund returned 3.72% in the last one year period.

As of March 2012, this growth mutual fund held 126 issues, with 11.24% of its total assets invested in Apple, Inc.

T. Rowe Price Growth Stock (PRGFX - MF report) seeks capital growth over the long term. The fund utilizes the majority of its assets to purchase common stocks issued by a wide range of growth–oriented companies. It focuses on investing in companies which have the potential to issue higher dividends over time. The growth mutual fund returned 6.58% in the last one year period.

Robert Bartolo is the fund manager has managed this growth mutual fund since 2007.

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.

Please login to Zacks.com or register to post a comment.