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3 Growth Mutual Funds to Buy as Fed Holds Interest Rate
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In the recent final policy meeting, the Federal Reserve decided to keep interest rates unchanged, signaling a potential shift from the previous monetary tightening measures. The Chair, Jerome Powell, expressed confidence in this decision and mentioned that rate hikes are no longer part of the base case scenario. Instead, discussions about rate cuts are now being considered.
These moves by the Federal Reserve, along with the market response, create an environment that favors growth-oriented investments. The Dow Jones Industrial Average experienced a surge, surpassing the 37,000-point mark for the first time. This upward trend reflects investors’ increased confidence in expansion.
Considering these developments, growth mutual funds emerge as an option for investors navigating this changing landscape. These funds prioritize capital appreciation and provide exposure to sectors with growth potential, making them well-suited for the current economic conditions.
The Federal Open Market Committee's projections indicate the possibility of three rate cuts in 2024. This aligns with the nature of growth mutual funds since they are strategically positioned to benefit from periods of economic expansion. They typically invest in sectors expected to experience growth, such as technology, healthcare and innovation.
By the way, these funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), positive three-year and five-year annualized returns, and minimum initial investments within $5000. They also carry a low expense ratio compared to the category average.
BNY Mellon Large Cap Securities Fund (DREVX - Free Report) seeks to provide long-term capital growth consistent with the preservation of capital by investing in common stocks issued primarily by U.S. companies and in foreign securities.
Karen Miki Behr has been the lead manager of DREVX since Sep 21, 2021. Most of the fund's holdings were in companies like Apple Inc. (8.9%), Microsoft Corp (7.8%) and NVIDIA Corp (6.4%) as of Jun 30, 2023.
DREVX's 3-year and 5-year returns are 11% and 14.5%, respectively. The annual expense ratio is 0.70% compared to the category average of 0.99%. DREVX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.
Principal MidCap Fund (PEMGX - Free Report) seeks long-term growth by investing primarily in common stocks and other equity securities of medium-capitalization companies that its advisors believe offer above-average growth potential.
Bill Nolin has been the lead manager of PEMGX since Dec 6, 2000. Most of the fund's holdings were in companies like TransDigm Group, Inc (5.5%), Copart, Inc. (5.2%) and Brookfield Corp (4.7%) as of Jul 31, 2023.
PEMGX's 3-year and 5-year returns are 5.9% and 11.8%, respectively. The annual expense ratio is 0.95% compared to the category average of 1.09%. PEMGX has a Zacks Mutual Fund Rank #1.
Northern Small Cap Core Fund (NSGRX - Free Report) invests most of its assets in equity securities of small-cap companies falling within the market capitalization range of those included on the Russell 2000 Index at the time of investment.
Michael R. Hunstad has been the lead manager of NSGRX since Jul 30, 2020. Most of the fund's holdings were in companies like Northern Institutional Funds - U.S. Government Select Portfolio (3%), Super Micro Computer, Inc. (0.5%) and Axcelis Technologies, Inc. (0.4%) as of Jun 30, 2023.
NSGRX's 3-year and 5-year returns are 4.7% and 5.9%, respectively. The annual expense ratio is 0.59% compared to the category average of 1.03%. NSGRX has a Zacks Mutual Fund Rank #1.
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3 Growth Mutual Funds to Buy as Fed Holds Interest Rate
In the recent final policy meeting, the Federal Reserve decided to keep interest rates unchanged, signaling a potential shift from the previous monetary tightening measures. The Chair, Jerome Powell, expressed confidence in this decision and mentioned that rate hikes are no longer part of the base case scenario. Instead, discussions about rate cuts are now being considered.
These moves by the Federal Reserve, along with the market response, create an environment that favors growth-oriented investments. The Dow Jones Industrial Average experienced a surge, surpassing the 37,000-point mark for the first time. This upward trend reflects investors’ increased confidence in expansion.
Considering these developments, growth mutual funds emerge as an option for investors navigating this changing landscape. These funds prioritize capital appreciation and provide exposure to sectors with growth potential, making them well-suited for the current economic conditions.
The Federal Open Market Committee's projections indicate the possibility of three rate cuts in 2024. This aligns with the nature of growth mutual funds since they are strategically positioned to benefit from periods of economic expansion. They typically invest in sectors expected to experience growth, such as technology, healthcare and innovation.
Moreover, mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
By the way, these funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), positive three-year and five-year annualized returns, and minimum initial investments within $5000. They also carry a low expense ratio compared to the category average.
BNY Mellon Large Cap Securities Fund (DREVX - Free Report) seeks to provide long-term capital growth consistent with the preservation of capital by investing in common stocks issued primarily by U.S. companies and in foreign securities.
Karen Miki Behr has been the lead manager of DREVX since Sep 21, 2021. Most of the fund's holdings were in companies like Apple Inc. (8.9%), Microsoft Corp (7.8%) and NVIDIA Corp (6.4%) as of Jun 30, 2023.
DREVX's 3-year and 5-year returns are 11% and 14.5%, respectively. The annual expense ratio is 0.70% compared to the category average of 0.99%. DREVX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.
Principal MidCap Fund (PEMGX - Free Report) seeks long-term growth by investing primarily in common stocks and other equity securities of medium-capitalization companies that its advisors believe offer above-average growth potential.
Bill Nolin has been the lead manager of PEMGX since Dec 6, 2000. Most of the fund's holdings were in companies like TransDigm Group, Inc (5.5%), Copart, Inc. (5.2%) and Brookfield Corp (4.7%) as of Jul 31, 2023.
PEMGX's 3-year and 5-year returns are 5.9% and 11.8%, respectively. The annual expense ratio is 0.95% compared to the category average of 1.09%. PEMGX has a Zacks Mutual Fund Rank #1.
Northern Small Cap Core Fund (NSGRX - Free Report) invests most of its assets in equity securities of small-cap companies falling within the market capitalization range of those included on the Russell 2000 Index at the time of investment.
Michael R. Hunstad has been the lead manager of NSGRX since Jul 30, 2020. Most of the fund's holdings were in companies like Northern Institutional Funds - U.S. Government Select Portfolio (3%), Super Micro Computer, Inc. (0.5%) and Axcelis Technologies, Inc. (0.4%) as of Jun 30, 2023.
NSGRX's 3-year and 5-year returns are 4.7% and 5.9%, respectively. The annual expense ratio is 0.59% compared to the category average of 1.03%. NSGRX has a Zacks Mutual Fund Rank #1.
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 >>