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3 Large-Cap Growth Funds to Buy as Inflation Continues to Cool
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Inflation has steadily declined over the past 18 months, thanks to the Federal Reserve’s monetary tightening policy implemented in March 2022. According to the latest report from the Bureau of Labor Statistics, the Consumer Price Index (CPI) remained unchanged month over month in October.
Year over year, CPI rose 3.2% in October, a lot lower than September’s increase of 3.7%. Core CPI, which excludes volatile energy and food prices, climbed 4% in October on a year-over-year basis, while it increased just 0.4% month over month.
The Bureau of Labor Statistics also reported that the Producer Price Index (PPI) rose 0.5% month over month in October, after increasing 0.4% in September. Year over year, PPI increased 1.3% after jumping 2.2% in September.
A steady decline in inflation saw the Federal Reserve keeping its benchmark policy rate unchanged in the range of 5.25-5.5% in the last two meetings. The Fed has kept interest rates unaltered thrice this year after increasing it by 525 basis points since Mach 2022.
Although inflation is still higher than the Fed’s 2% target, the back-to-back pauses in interest rate hikes coupled with fresh jobs data indicating a cooling labor market has made market participants believe that the central bank may be done with its rate-hike cycle.
Based on the CME Groups FedWatch Tool market indicators, there is a 99.7% chance that the Federal Reserve will keep interest rates unchanged in its December FOMC meeting.
3 Best Choices
In light of these signals and responses in the market, growth-oriented mutual funds are currently considered appealing choices for investors aiming to navigate and potentially capitalize on the evolving economic conditions.
As a result, we've chosen three growth funds that are worth buying. These funds have given impressive 3-year and 5-year annualized returns, boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), offer a minimum initial investment within $5,000 and carry a low expense ratio.
The question here is why should investors consider mutual funds? Reduced transaction costs and diversification of portfolios without the several commission charges that are associated with stock purchases are the primary reasons why one should be parking their money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Bridges Investment Fund’s (BRGIX - Free Report) primary investment objective is long-term capital growth, with a secondary objective of generating moderate investment income. BRGIX seeks to achieve its objectives by investing primarily in a diversified portfolio of common stocks and convertible securities that fund management believes offers the potential for increased earnings and dividends over time.
Bridges Investment Fund has a track of positive total returns for over 10 years. Specifically, BRGIX’s returns over the three and five-year benchmarks are 10.7% and 12.4%, respectively. The annual expense ratio of 0.75% is lower than the category average of 1.05%. BRGIX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
T. Rowe Price Blue Chip Growth (TRBCX - Free Report) fund’s objective is to provide long-term capital growth. TRBCX invests at least 80% of net assets in common stocks of large and medium-sized blue-chip companies that have the potential for above-average growth in earnings and are well-established in their respective industries.
T. Rowe Price Blue Chip Growth fund has a track of positive total returns for over 10 years. Specifically, TRBCX’s returns over the three and five-year benchmarks are 1.4% and 9.3%, respectively. The annual expense ratio of 0.57% is lower than the category average of 0.99%. TRBCX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
Fidelity Blue Chip Growth K6 (FBCGX - Free Report) fund invests most of its net assets in common stocks of blue-chip companies, according to Fidelity Management & Research Company LLC. FBCGX advisors generally choose to invest in large or medium market-capitalization companies.
Fidelity Blue Chip Growth K6 fund has a track of positive total returns for over 10 years. Specifically, FBCGX’s returns over the three and five-year benchmarks are 6.8% and 15.6%, respectively. The annual expense ratio of 0.46% is lower than the category average of 0.99%. FBCGX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
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3 Large-Cap Growth Funds to Buy as Inflation Continues to Cool
Inflation has steadily declined over the past 18 months, thanks to the Federal Reserve’s monetary tightening policy implemented in March 2022. According to the latest report from the Bureau of Labor Statistics, the Consumer Price Index (CPI) remained unchanged month over month in October.
Year over year, CPI rose 3.2% in October, a lot lower than September’s increase of 3.7%. Core CPI, which excludes volatile energy and food prices, climbed 4% in October on a year-over-year basis, while it increased just 0.4% month over month.
The Bureau of Labor Statistics also reported that the Producer Price Index (PPI) rose 0.5% month over month in October, after increasing 0.4% in September. Year over year, PPI increased 1.3% after jumping 2.2% in September.
A steady decline in inflation saw the Federal Reserve keeping its benchmark policy rate unchanged in the range of 5.25-5.5% in the last two meetings. The Fed has kept interest rates unaltered thrice this year after increasing it by 525 basis points since Mach 2022.
Although inflation is still higher than the Fed’s 2% target, the back-to-back pauses in interest rate hikes coupled with fresh jobs data indicating a cooling labor market has made market participants believe that the central bank may be done with its rate-hike cycle.
Based on the CME Groups FedWatch Tool market indicators, there is a 99.7% chance that the Federal Reserve will keep interest rates unchanged in its December FOMC meeting.
3 Best Choices
In light of these signals and responses in the market, growth-oriented mutual funds are currently considered appealing choices for investors aiming to navigate and potentially capitalize on the evolving economic conditions.
As a result, we've chosen three growth funds that are worth buying. These funds have given impressive 3-year and 5-year annualized returns, boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), offer a minimum initial investment within $5,000 and carry a low expense ratio.
The question here is why should investors consider mutual funds? Reduced transaction costs and diversification of portfolios without the several commission charges that are associated with stock purchases are the primary reasons why one should be parking their money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Bridges Investment Fund’s (BRGIX - Free Report) primary investment objective is long-term capital growth, with a secondary objective of generating moderate investment income. BRGIX seeks to achieve its objectives by investing primarily in a diversified portfolio of common stocks and convertible securities that fund management believes offers the potential for increased earnings and dividends over time.
Bridges Investment Fund has a track of positive total returns for over 10 years. Specifically, BRGIX’s returns over the three and five-year benchmarks are 10.7% and 12.4%, respectively. The annual expense ratio of 0.75% is lower than the category average of 1.05%. BRGIX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
T. Rowe Price Blue Chip Growth (TRBCX - Free Report) fund’s objective is to provide long-term capital growth. TRBCX invests at least 80% of net assets in common stocks of large and medium-sized blue-chip companies that have the potential for above-average growth in earnings and are well-established in their respective industries.
T. Rowe Price Blue Chip Growth fund has a track of positive total returns for over 10 years. Specifically, TRBCX’s returns over the three and five-year benchmarks are 1.4% and 9.3%, respectively. The annual expense ratio of 0.57% is lower than the category average of 0.99%. TRBCX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
Fidelity Blue Chip Growth K6 (FBCGX - Free Report) fund invests most of its net assets in common stocks of blue-chip companies, according to Fidelity Management & Research Company LLC. FBCGX advisors generally choose to invest in large or medium market-capitalization companies.
Fidelity Blue Chip Growth K6 fund has a track of positive total returns for over 10 years. Specifically, FBCGX’s returns over the three and five-year benchmarks are 6.8% and 15.6%, respectively. The annual expense ratio of 0.46% is lower than the category average of 0.99%. FBCGX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here.
Want key mutual fund info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>