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 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.

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 22.12% in the last one year period.

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

Elfun Trusts ( ELFNX - MF report ) seeks capital appreciation over the long term and future income. The fund focuses on investing in domestic equity securities including common and preferred stocks. It may also invest a relatively smaller amount in foreign securities and bonds. The growth mutual fund returned 21.63% in the last one year period.

The growth mutual fund has a minimum initial investment of $500 and an expense ratio of 0.21% compared to a category average of 1.27%.

GE Investment Premier Growth ( GEPGX - MF report ) invests a large share of its assets in equity securities. The fund focuses on investing in a select group of growth oriented large and mid-cap companies whose market capitalization is greater than $2 billion. The growth mutual fund returned 20.34% in the last one year period.

As of July 2012, this growth mutual fund held 37 issues, with 6.91% of its total assets invested in Apple, Inc.

Pyxis Premier Growth Equity A ( HPEAX - MF report ) seeks long term capital appreciation. The fund utilizes the majority of its assets to purchase equity securities issued by a small number of small and mid-cap companies. It may also purchase bonds and foreign securities. The fund may also indirectly invest in certain instruments by investing in derivatives. The growth mutual fund returned 19.59% in the last one year period.

David B. Carlson is the fund manager has managed this growth mutual fund since 1996.

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.