Investors seeking long-term capital appreciation over dividend payout may consider investing in growth mutual funds. These funds focus on realizing a considerable amount of capital growth by investing in stocks of firms whose value 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 they may experience relatively more fluctuations than other fund classes.
Below we will share with you three top-rated all 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 funds.
Fidelity Growth Strategies K (FAGKX - MF report) generally focuses on acquiring common stocks of both domestic and foreign companies. FAGKX invests in securities of companies that are expected to have above-average earnings or revenue growth potential. Although the fund invests a major portion in securities of mid-cap companies, it may also invest in larger or smaller companies. Fidelity Growth Strategies K fund has a three-year annualized return of 10%.
FAGKX has an expense ratio of 0.76% as compared to the category average of 1.30%.
Putnam Multi-Cap Growth A (PNOPX - MF report) seeks capital growth for the long run. PNOPX primarily invests in securities of companies that are believed to have impressive growth prospects irrespective of their market capitalization. The fund primarily focuses on investing in growth stocks. Putnam Multi-Cap Growth A fund has a three-year annualized return of 9.9%.
Robert Brookby is the fund manager of PNOPX since 2010.
Fidelity Select IT Services (FBSOX - MF report) invests the large chunk of its assets in equity securities of companies involved in the information technology industry. FBSOX seeks appreciation of capital. The fund invest in both U.S. and non-U.S. companies. This non-diversified fund bets on growth-oriented companies irrespective of their market cap. Fidelity Select IT Services has a three-year annualized return of 12.5%.
As of July 2016, FBSOX held 66 issues, with 15.1% of its assets invested in Visa Inc Class A.
To view the Zacks Rank and past performance of all mutual funds from this category, investors can click here to see the complete list of funds.
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