We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 Growth Mutual Funds to Buy on Fed's Unchanged Interest Rates
Read MoreHide Full Article
The recent decision by the U.S. Federal Reserve to maintain benchmark interest rates between 5.25% and 5.50% after a two-day FOMC meeting from Jan 30-31 reflects the central bank's cautious stance amid evolving economic conditions. This marks the fourth consecutive meeting where rates have remained unchanged, aligning with market expectations.
The communication from the Federal Reserve shows a shift in its willingness to raise interest rates until inflation hits the target of 2%. While this indicates a change in the central bank’s strategy for controlling inflation, rate cuts are not being considered due to the current levels of inflation.
This nuanced stance underscores the importance of strategic investment decisions in response to dynamic economic factors, making growth mutual funds appear as a compelling option for capital appreciation. These funds provide a strategic avenue to capitalize on potential opportunities while managing risks.
Thus, from an investment standpoint, we have selected three growth mutual funds, which 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 22, 2021. Most of the fund's holdings were in companies like Microsoft Corp (7.2%), Apple Inc. (7.1%) and NVIDIA Corp (6%) as of Sep 30, 2023.
DREVX's 3-year and 5-year returns are 11% and 17.4%, 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.
Value Line Mid Cap Focused (VLIFX - Free Report) invests most of its assets in common stocks and equity securities of mid-cap companies.
Stephen E. Grant has been the lead manager of VLIFX since Apr 1, 2009. Most of the fund's holdings were in companies like STERIS plc (5%), West Pharmaceutical Services, Inc. (4.5%), and Gartner, Inc. (4.5%) as of Sep 30, 2023.
VLIFX's 3-year and 5-year returns are 9.8% and 16.5%, respectively. The annual expense ratio is 1.05% compared to the category average of 1.09%. VLIFX 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.
Robert H. Bergson has been the lead manager of NSGRX since Feb 28, 2010. Most of the fund's holdings were in companies like Northern Institutional Funds U.S. Government Select Portfolio (3%), Super Micro Computer, Inc. (0.5%) and Axcelis Technologies, Inc. (0.4%) as of Sep 30, 2023.
NSGRX's 3-year and 5-year returns are 6.1% and 11%, respectively. The annual expense ratio is 0.59% compared to the category average of 1.03%. NSGRX has a Zacks Mutual Fund Rank #2.
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:
Image: Bigstock
3 Growth Mutual Funds to Buy on Fed's Unchanged Interest Rates
The recent decision by the U.S. Federal Reserve to maintain benchmark interest rates between 5.25% and 5.50% after a two-day FOMC meeting from Jan 30-31 reflects the central bank's cautious stance amid evolving economic conditions. This marks the fourth consecutive meeting where rates have remained unchanged, aligning with market expectations.
The communication from the Federal Reserve shows a shift in its willingness to raise interest rates until inflation hits the target of 2%. While this indicates a change in the central bank’s strategy for controlling inflation, rate cuts are not being considered due to the current levels of inflation.
This nuanced stance underscores the importance of strategic investment decisions in response to dynamic economic factors, making growth mutual funds appear as a compelling option for capital appreciation. These funds provide a strategic avenue to capitalize on potential opportunities while managing risks.
Thus, from an investment standpoint, we have selected three growth mutual funds, which 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 22, 2021. Most of the fund's holdings were in companies like Microsoft Corp (7.2%), Apple Inc. (7.1%) and NVIDIA Corp (6%) as of Sep 30, 2023.
DREVX's 3-year and 5-year returns are 11% and 17.4%, 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.
Value Line Mid Cap Focused (VLIFX - Free Report) invests most of its assets in common stocks and equity securities of mid-cap companies.
Stephen E. Grant has been the lead manager of VLIFX since Apr 1, 2009. Most of the fund's holdings were in companies like STERIS plc (5%), West Pharmaceutical Services, Inc. (4.5%), and Gartner, Inc. (4.5%) as of Sep 30, 2023.
VLIFX's 3-year and 5-year returns are 9.8% and 16.5%, respectively. The annual expense ratio is 1.05% compared to the category average of 1.09%. VLIFX 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.
Robert H. Bergson has been the lead manager of NSGRX since Feb 28, 2010. Most of the fund's holdings were in companies like Northern Institutional Funds U.S. Government Select Portfolio (3%), Super Micro Computer, Inc. (0.5%) and Axcelis Technologies, Inc. (0.4%) as of Sep 30, 2023.
NSGRX's 3-year and 5-year returns are 6.1% and 11%, respectively. The annual expense ratio is 0.59% compared to the category average of 1.03%. NSGRX has a Zacks Mutual Fund Rank #2.
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 >>