Back to top

Image: Bigstock

3 Large-Cap Mutual Funds With Stupendous Return Potential

Read MoreHide Full Article

Large-cap funds are ideal investment options for those seeking a high return potential accompanied by lower 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. 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 all the large-cap growth mutual funds.

Principal LargeCap Growth I R4 (PPUSX - Free Report) seeks capital growth for the long run. PPUSX invests a bulk of its assets in equity securities of large-cap companies. The fund invests mainly in securities of those companies that are expected have above-average growth potential. Principal LargeCap Growth I R4 has one-year annualized returns of 31.8%.

As of February 2018, PPUSX held 532 issues, with 6.13% of its assets invested in Amazon.com Inc.

T. Rowe Price Blue Chip Growth (TRBCX - Free Report) invests heavily in common stocks of large as well as mid-cap blue-chip companies. The fund focuses on companies that have good financial fundamentals, seasoned management and strong market positions. T. Rowe Price Blue Chip Growth has one-year annualized returns of 36.8%.

TRBCX has an expense ratio of 0.70% compared with the category average of 1.10%.

Fidelity Large Cap Growth Enhanced Index  seeks appreciation of capital. FLGEX invests a large chunk of its assets in common stocks of large-cap companies included on the Russell 1000 Growth Index. Fidelity Large Cap Growth Enhanced Index has one-year annualized returns of 23.5%.

Patrick Waddell is one of the fund managers of FLGEX since 2007.

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

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 >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


T ROWE PRICE BLUE CHIP GROW (TRBCX) - free report >>

Principal LgCp Gr I R4 (PPUSX) - free report >>