Back to top

Zacks #1 Ranked Growth Mutual Funds

Read MoreHide Full Article

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.

Lord Abbett Growth Leaders A (LGLAX - Free Report) seeks capital growth. It invests in both domestic and foreign companies having remarkable growth prospect over the long run. It invest a minimum of 50% of its assets in companies whose market capital size is similar to companies listed in the Russell 1000 Index. The growth mutual fund returned 37.09% in the last one year.

The fund has an expense ratio of 0.85% as compared to category average of 1.22%.

Columbia Select Large Cap Growth A (ELGAX - Free Report) invests a lion’s share of its assets in companies which have presence in both domestic and foreign lands. The market capitalizations of these firms are similar to companies listed in the Russell 1000 Growth Index. The growth mutual fund returned 32.96% in the last one year.

Thomas M. Galvin is the fund manager and has managed this fund since 2003.

JPMorgan Growth Advantage A (VHIAX - Free Report) seeks capital appreciation over long run. It invests in companies irrespective of their market capital. However, it may sometimes target a particular capitalization class like large market capitalization. In order to gain larger equity exposure, it invests in futures contract. The growth mutual fund returned 33.98% in the last one year.

As of February 2014, this fund held 88 issues with 4.12% of its assets invested in Google Inc Class A.

Federated MDT Mid Cap Growth Strategies (FGSAX - Free Report) invests majority of its assets in mid-cap firms having impressive growth potentials. The market capitalizations of these companies are within the range of market cap of companies included in the Russell Midcap Growth Index. The growth mutual fund returned 32.01% in the last one year.

The fund has an expense ratio of 1.22% as compared to category average of 1.34%.

Franklin Flex Cap Growth A seeks capital growth. It invests in both domestic and foreign companies having bright growth prospect. It invests in companies of all market capitalization and may vary from emerging to prominent growth companies. The growth mutual fund returned 30.03% in the last one year.

Conrad Herrmann is the fund manager and has managed this fund since 1993.

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.

Published in