A single minded focus towards capital appreciation is what best characterizes growth funds. This purity of style is further established by the fact that investors can expect few or no dividend pay outs from such mutual funds. But investing in this class of funds requires a relatively higher appetite for risk than those following a value or blend style towards investing. However, in depth research and professional management are what make mutual funds a much safer proposition as compared to directly investing in growth stocks.
Below we will share with you 5 top rated growth mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future.
BlackRock Focus Growth A (MDFOX) primarily invests in common stocks of 25 to 35 companies with above-average growth potential. It focuses on acquiring equity securities of mid-cap and large-cap companies. Not more than 20% of its assets are invested in foreign securities. The growth mutual fund returned 33.02% over the last one year period.
Edward P. Dowd is the fund manager and he has managed this growth mutual fund since 2008.
Thrivent Mid Cap Growth A (LBMGX) seeks capital appreciation. At least 80% of its assets are invested in mid-cap companies. It focuses on mid-cap stocks similar to companies in the Russell Mid-cap Growth index or S&P MidCap 400/Citigroup Growth index. The growth mutual fund has a five year annualized return of 8.59%
The growth mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.18% compared to a category average of 1.41%.
ING Growth Opportunities A (NLCAX) invests a large proportion of its assets in domestic companies with the potential for superior growth. Not more than 15% of its assets may be utilized to purchase foreign securities. The growth mutual fund returned 32.86% over the last one year period.
As of March 2011, this growth mutual fund held 70 issues, with 6.23% of its total assets invested in ExxonMobil Corporation.
Glenmede Large Cap Growth (GTLLX) seeks significantly high total return over the long term. The majority of the fund’s assets are invested in 50 to 90 domestic large cap companies. The fund focuses on purchasing equity securities, such as common stocks. The growth mutual fund has a three year annualized return of 3.48%
Paul T. Sullivan is the fund manager and he has managed this growth mutual fund since 2004.
Turner Midcap Growth Investor (TMGFX) invests a large proportion of its assets in equity securities of domestic mid-cap companies. It focuses on common stocks and seeks out firms with diversified operations across different sectors. Not more than 5% of its assets may be invested in a single issuer. The fund returned 39.13% in the last one year period.
The growth mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.18% compared to a category average of 1.41%.
To view the Zacks Rank and past performance of all growth mutual funds, then click here.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds.