Growth funds offer incremental gains on capital by investing in stocks of companies that are projected to rise in value over the long term. However, relatively higher tolerance for risk is a prerequisite other than willingness to park money for a long period of time while investing in these securities. This is because these may experience relatively greater fluctuation than the other fund classes.
Additionally, large-cap funds are ideal investment options for those seeking a high-return potential accompanied by lesser risk than what small-cap and mid-cap funds bear. These funds have exposure to large-cap stocks with a long-term performance history, assuring more stability than what mid or small caps offer.
Below we share with you three top-ranked large-cap growth mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of all the large-cap growth mutual funds.
T. Rowe Price Blue Chip Growth Fund (TRBCX - Free Report) aims primarily for long-term capital growth and keeps income as the secondary objective. The fund invests the majority of its assets in common stocks of large and medium-sized blue chip growth companies. These companies generally hold leading market positions, and have seasoned management and strong financial fundamentals. TRBCX has returned nearly 19% over the past three years.
As of the end of June 2020, TRBCX held 122 issues with 11.6% of its assets invested in Amazon.com Inc.
MFS Growth Fund Class A (MFEGX - Free Report) aims for capital appreciation. The fund invests in equity securities that include common stocks. The fund managers emphasize investing in companies that have an above-average earnings growth potential compared to other growth companies. MFEGX has returned 19.9% over the past three years.
MFEGX has an expense ratio of 0.91% compared with the category average of 1.05%.
DWS Capital Growth Fund - Class A (SDGAX - Free Report) aims for long-term growth of capital. The fund invests more than 50% of its total assets on equities, primarily common stocks. While investing, the fund manager looks for established companies that are similar in size to the S&P 500 companies or Russell 1000 growth index. SDGAX has returned 18.6% over the past three years.
Sebastian P. Werner is the fund manager of SDGAX since 2016.
To view the Zacks Rank and past performance of all large-cap growth mutual funds, investors can click here to see the complete list of funds.
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