Back to top

Image: Bigstock

Focus on 3 Large-Cap Growth Mutual Funds for High Gains

Read MoreHide Full Article

Growth funds offer incremental gains on capital by investing in stocks of companies that are projected to rise in value over the long term. However, relatively higher tolerance for 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.

Additionally, large-cap funds are ideal investment options for those seeking a high-return potential accompanied by lesser risk than what small-cap and mid-cap funds bear. These funds have exposure to large-cap stocks with a long-term performance history, assuring more stability than what mid or small caps offer.

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.

Vanguard Growth Index Investor (VIGRX - Free Report)  seeks long-term capital growth by investing in equity securities of large-cap companies. VIGRX employs an indexing investment approach. The fund aims to track the performance of the CRSP US Large Cap Growth Index by investing most of its assets in stocks that make up the index. Vanguard Growth Index has one-year annualized returns of 22.5%.

As of September, 2018, VIGRX held 326 issues with 7.94% of its assets invested in Apple Inc.

TIAA-CREF Growth & Income Premier (TRPGX - Free Report) invests a large chunk of its assets in equity securities that have the prospect of dividend income, capital appreciation or both. The fund invests mainly in securities of large-cap companies that have strong growth potential. TIAA-CREF Growth & Income Premier has one-year annualized returns of 19.9%.

TRPGX has an expense ratio of 0.56% compared with the category average of 1.19%.

MassMutual Premier Disciplined Growth Fund R5 (MPGSX - Free Report) seeks to outperform the Russell 1000 Growth Index in terms of total returns. MPGSX primarily invests in common stocks issued by companies that have the potential for long-term growth. The fund normally invests in stocks of companies that have minimum market capitalization of $200 million. MassMutual Premier Disciplined Growth Fund R5 has one-year annualized returns of 23.7%.

Michael F. Farrell is one of the fund managers of MPGSX since 2000.

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 >>

Published in