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3 Large-Cap Growth Mutual Funds for Excellent Returns

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Large-cap funds are ideal investment options for those who seek high returns as well as lesser risk than small-cap and mid-cap funds. These funds have exposure to large-cap stocks with a long-term performance history, assuring more stability than what mid or small caps offer.

Additionally, growth funds focus on realizing an appreciable amount of capital growth by investing in stocks of firms, the value of which 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 these may experience relatively greater fluctuation than the other fund classes.

Below we share with you three top-ranked large-cap growth mutual funds, namely American Century Growth Fund (AGRDX - Free Report) , T. Rowe Price All-Cap Opportunities Fund (PRWAX - Free Report) and AQR Large Cap Momentum Style Fund Class I (AMOMX - Free Report) . 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 funds.

American Century Growth Fund invests in stocks of companies that it believes will increase in value, using a variety of analytical research tools and techniques to identify the stocks from large-cap companies. AGRDX usually invests in securities of companies demonstrating business improvement. The fund has returned 15.3% over the past three years.

As of January 2022, AGRDX held 71 issues, with 13.5% of its assets invested in Microsoft Corp.

T. Rowe Price All-Cap Opportunities Fund aims for long-term capital growth. PRWAX invests in common stocks of U.S. companies operating in the fastest-growing, or potentially fastest-growing sectors of the economy. The fund has returned 18.1% over the past three years.

Justin White has been one of the fund managers of PRWAX since 2016.

AQR Large Cap Momentum Style Fund Class I seeks long-term capital appreciation by investing primarily in equity or equity-related securities of large-cap companies traded on a principal U.S. exchange or over-the-counter market that it believes have positive momentum. AMOMX invests the majority of its net assets in large-cap U.S. companies. The fund has returned 13.7% over the past three years.

AMOMX has an expense ratio of 0.40% compared with the category average of 0.99%.

To view the Zacks Rank and the past performance of all large-cap growth mutual funds, investors can click here to see the complete list of large-cap growth mutual funds.

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