Large-cap funds are ideal investment options for those who seek high returns accompanied by lesser risk than small-cap and mid-cap funds. These funds have exposure to large-cap stocks with a long-term performance history, assuring more stability than what mid or small caps offer.
Additionally, growth funds focus on realizing an appreciable amount of capital growth by investing in stocks of firms, the value of which is projected to rise over the long term. However, 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 these may experience relatively greater fluctuation than the other fund classes.
Below we share with you three top-ranked large-cap growth mutual funds. Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform peers in the future. Investors can click here to see the complete list of all the large-cap growth mutual funds.
Fidelity Growth Company FDGRX fund aims for capital appreciation. This fund invests in common stocks of companies that the fund manager believes have above-average growth potential. FDGRX has returned 24.3% over the past three years.
As of the end of September 2020, FDGRX held 475 issues with 8.59% of its assets invested in NVIDIA Corp (NASDAQ:NVDA).
T. Rowe Price New America Growth Fund PRWAX aims for long-term capital growth. The fund invests in common stocks of U.S. companies operating in those sectors of the economy that, in T. Rowe Price's view, are the fastest growing or have the greatest growth potential. PRWAX has returned 20.1% over the past three years.
Justin P. White is the fund managers of PRWAX since 2016.
AB Large Cap Growth Fund Class A APGAX aims for long-term growth of capital. The fund invests majority of its assets in common stocks of a limited number of large, high-quality U.S. companies. APGAX has returned 18.7% over the past three years.
APGAX has an expense ratio of 0.86% compared with the category average of 1.04%.
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.
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