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Buy These 3 Baron Mutual Funds for Solid Returns

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Baron Capital is an investment management company managing $43.4 billion in assets as of Sept. 30, 2024. The company’s strategy is to invest in growth equities for the long term. Baron Capital aims to identify secular growth businesses endowed with sustainable competitive edges and strong management teams. It has incorporated ESG criteria into its research process for investing in equities with an emphasis on sustainable growth. The Baron approach to portfolio construction is very much grounded in the bottom-up approach and this is done through the application of deep industry expertise and robust risk management. All these qualities make Baron Capital an attractive choice for investment.

We have chosen three Baron Capital mutual funds — Baron Durable Advantage Fund (BDAFX - Free Report) , Baron Real Estate Income Retail (BRIFX - Free Report) and Baron Focused Growth Fund (BFGFX - Free Report) — that investors should buy now for the long term. These funds have a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), positive three-year and five-year annualized returns, minimum initial investments within $5000 and expense ratios considerably lower than the category average. So, these funds have provided a comparatively stronger performance and carry a lower fee.

Baron Durable Advantage Fund invests most of its net assets in equity securities of large U.S. companies. BDAFX advisors invest in well-managed, cash-generating businesses that reward shareholders with buybacks and dividends.

Alex Umansky has been the lead manager of BDAFX since Dec. 29, 2017. Most of the fund's holdings were in companies like Microsoft Corp (8%) Meta Platforms, Inc. (6.9%) and Amazon.com, Inc. (6.4%) as of Sept. 30, 2024.

BDAFX's 3-year and 5-year annualized returns are 13% and 17.9%, respectively. Its net expense ratio is 0.95%. BDAFX 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.

Baron Real Estate Income Retail fund invests in income-generating and other real estate-related securities across all market capitalizations, including stocks, debt, preferred securities and international real estate instruments.

Jeffrey Kolitch has been the lead manager of BRIFX since Dec. 29, 2017. Most of the fund's holdings were in companies like Equinix, Inc. (9.6%), Welltower OP LLC (8.5%) and Vornado Realty Trust (5.7%) as of Sept. 30, 2024.

BRIFX's 3-year and 5-year annualized returns are 4% and 10.3%, respectively. Its net expense ratio is 1.05%. BRIFX has a Zacks Mutual Fund Rank #2.

Baron Focused Growth Fund invests in common stocks of U.S. small- and mid-sized growth companies, defined as those with market caps up to the largest in the Russell Midcap Growth Index at reconstitution.

Ronald Baron has been the lead manager of BFGFX since June 30, 2008. Most of the fund's holdings were in companies like Tesla, Inc. (9.8%), Arch Capital Group Ltd. (6.1%) and Spotify Technology S.A.  (5.9%) as of Sept. 30, 2024.

BFGFX's 3-year and 5-year annualized returns are 4.8% and 26.1%, respectively. Its net expense ratio is 1.32%. BFGFX has a Zacks Mutual Fund Rank #2.

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