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According to information released by the U.S. Bureau of Labor Statistics, the Consumer Price Index, for All Urban Consumers (CPI U) remained unchanged in October after experiencing a 0.4% increase in September. Over the year the overall price index has risen by 3.2% showing a slowdown from the previous month by 3.7%.
As a result of this data, the Dow Jones Industrial Average saw an increase of 490 points and expectations for further interest rate hikes from the Federal Reserve declined. Notably based on the CME Groups FedWatch Tool market indicators indicate a 100% likelihood that the Fed will keep interest rates steady at its policy meeting in December.
Given these indications and market reactions growth mutual funds are currently seen as an attractive option, for investors seeking to navigate and potentially benefit from the changing economic landscape.
Thus, from an investment standpoint, we have selected three growth mutual funds, that are expected to hedge one's portfolio against any economic downturn and provide attractive returns. Mutual funds, in general, reduce transaction costs and diversify the portfolio without commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
These mutual funds, by the way, boast a Zacks Mutual Fund Rank #1 (Strong Buy)or 2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and carry a low expense ratio.
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 Alphabet Inc. (6.4%) as of Jun 30, 2023.
DREVX's 3-year and 5-year returns are 11.4% and 13.1%, 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.
K. William 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 6% and 10%, 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 (3.5%), Axcelis Technologies, Inc.(0.5%) and EMCOR Group, Inc. (0.4%) as of Jun 30, 2023.
NSGRX's 3-year and 5-year returns are 7.3% and 4.6%, respectively. The annual expense ratio is 0.59% compared to the category average of 1.03%. NSGRXhas a Zacks Mutual Fund Rank #1.
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3 Growth Mutual Funds to Buy as Inflation Eases
According to information released by the U.S. Bureau of Labor Statistics, the Consumer Price Index, for All Urban Consumers (CPI U) remained unchanged in October after experiencing a 0.4% increase in September. Over the year the overall price index has risen by 3.2% showing a slowdown from the previous month by 3.7%.
As a result of this data, the Dow Jones Industrial Average saw an increase of 490 points and expectations for further interest rate hikes from the Federal Reserve declined. Notably based on the CME Groups FedWatch Tool market indicators indicate a 100% likelihood that the Fed will keep interest rates steady at its policy meeting in December.
Given these indications and market reactions growth mutual funds are currently seen as an attractive option, for investors seeking to navigate and potentially benefit from the changing economic landscape.
Thus, from an investment standpoint, we have selected three growth mutual funds, that are expected to hedge one's portfolio against any economic downturn and provide attractive returns. Mutual funds, in general, reduce transaction costs and diversify the portfolio without commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
These mutual funds, by the way, boast a Zacks Mutual Fund Rank #1 (Strong Buy)or 2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and carry a low expense ratio.
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 Alphabet Inc. (6.4%) as of Jun 30, 2023.
DREVX's 3-year and 5-year returns are 11.4% and 13.1%, 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.
K. William 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 6% and 10%, 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 (3.5%), Axcelis Technologies, Inc.(0.5%) and EMCOR Group, Inc. (0.4%) as of Jun 30, 2023.
NSGRX's 3-year and 5-year returns are 7.3% and 4.6%, respectively. The annual expense ratio is 0.59% compared to the category average of 1.03%. NSGRXhas 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 >>