Top 5 Growth Mutual Funds - Best of Funds
January 17 2012 - 5:08AM
Zacks
When capital appreciation over the long term takes precedence
over dividend payouts, growth funds become a natural choice for
investors. These funds focus on realizing an appreciable amount of
capital growth by investing in stocks of firms whose value 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 they may experience relatively more fluctuations than other
fund classes.
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. To view the
Zacks Rank and past performance of all growth funds, then click
here.
Wells Fargo Advantage Growth (SGROX) seeks long term
capital appreciation by investing majority of its assets in US
equity securities. Not more than 25% of its assets may be utilised
to purchase foreign equity securities. The growth mutual fund
returned 15.59% in the last one year period.
The growth mutual fund has a minimum initial investment of
$2,500 and an expense ratio of 1.31% compared to a category average
of 1.29%.
John Hancock 2 Capital Appreciation 1 (JICPX) invests a
minimum of 65% of its assets in equity securities of companies that
have a market capitalization of more than $1 billion. The fund
selects companies that have favorable growth prospects. It may
invest a small portion of its assets in equity securities of
foreign companies. The growth mutual fund has a three year
annualized return of 18.14%.
Spiros A. Segalas is the fund manager and he has managed this
growth mutual fund since 2005.
Value Line Premier Growth (VALSX) seeks capital growth
over long term. The fund invests the majority of its assets in a
wide range of domestic companies. The fund is not sector specific
and invests in companies regardless of their size. The growth
mutual fund returned 10.94% in the last one year period.
As of December 2011, this growth mutual fund held 256 issues,
with 1.94% of its total assets invested in Alexion Pharmaceuticals,
Inc.
Neuberger Berman Mid Cap Growth (NMANX) utilizes at least
80% of its assets to purchase equity securities of mid-cap
companies. Companies invested in must have market capitalizations
within the range of Russell Midcap Index at the time of purchase.
The growth mutual fund has a ten year annualized return of
5.5%.
The growth mutual fund has a minimum initial investment of
$1,000 and an expense ratio of 1.02% compared to a category average
of 1.36%.
JPMorgan Large Cap Growth A (OLGAX) seeks long term
capital growth. The fund invests heavily in equity securities that
have the potential for above average growth. The fund focuses on
companies with large market capitalization which are within the
market capitalization range of the Russell 1000 Growth Index. The
growth mutual fund returned 9.36% in the last one year period.
Christopher Jones is the fund manager and he has managed this
growth mutual fund since 2006.
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.
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