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Mutual Fund Commentary

A single minded focus towards capital appreciation is what best characterizes 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.

PRIMECAP Odyssey Growth (POGRX - MF report) invests primarily in domestic stocks with favorable growth prospects which are attractively priced. The fund focuses on acquiring large and mid-cap stocks which generate low levels of current income. The growth mutual fund returned 15.31% over the last one year period.

The growth mutual fund has a minimum initial investment of $2,000 and an expense ratio of 0.66% compared to a category average of 1.27%.

RS Select Growth A (RSDGX - MF report) seeks capital growth by investing in small and mid-cap growth-oriented companies. The fund focuses on acquiring equity securities of companies whose market capitalizations may be at most 120% of the market cap of the largest company in the Russell 2500 Index. The growth mutual fund returned 19.95% in the last one year period.

Stephen Bishop is the fund manager and he has managed this growth mutual fund since 2007.

Turner Midcap Growth Investor (TMGFX - MF report) invests a large proportion of its assets in equity securities of domestic mid-cap companies. It focuses on common stocks and seeks out firms with diversified operations across different sectors. Not more than 5% of its assets may be invested in a single issuer. The fund returned 4% in the last one year period.

The growth mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.18% compared to a category average of 1.36%.

Mairs & Power Growth (MPGFX - MF report) seeks capital growth over the long term. The fund 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 21.05% in the last one year period.

As of June 2012, this growth mutual fund held 48 issues, with 5.32% of its total assets invested in Valspar Corporation.

Thornburg Core Growth A (THCGX - MF report) invests a large share of its assets in domestic growth oriented equity securities. It focuses on acquiring common stocks, but may also purchase foreign equity securities as well as debt instruments. The growth mutual fund has a three year annualized return of 25.32%.

Greg M Dunn is the fund manager and he has managed this growth mutual fund since 2012.

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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