Growth funds offer incremental gains on capital by investing in stocks of companies that are projected to rise in value over the long term. However, a relatively higher tolerance of risk is a prerequisite other than investors willingness to park money in these securities for the long haul. This is because these may experience relatively greater fluctuation than the other fund classes.
Additionally, large-cap funds are ideal investment options for those seeking a high-return potential accompanied by lesser risk than what small-cap and mid-cap funds bear. These funds have exposure to large-cap stocks with a long-term performance history, assuring more stability than what mid or small caps offer.
Below we share with you three top-ranked large-cap growth mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of all the large-cap growth mutual funds.
Fidelity Advisor Series Growth Opportunities Fund FAOFX aims for capital appreciation. The fund invests in common stocks of companies that its manager believes have above-average growth potential. FAOFX invests in domestic and foreign issuers and has returned 33% over the past three years.
As of October 2020 end, FAOFX held 259 issues with 7.94% of its assets invested in Microsoft Corp (NASDAQ:MSFT).
Transamerica Large Growth Fund Class R4 TGWFX aims tomaximize long-term growth. The fund invests the majority of its assets in equity securities of large-cap companies and other investments with similar economic characteristics. TGWFX has returned 31.2% over the past three years.
TGWFX has an expense ratio of 0.90% compared with the category average of 1.04%.
Fidelity Series Blue Chip Growth Fund FSBDX aims for capital growth over the long term. The fund invests the majority of its assets in common stocks of blue chip companies,which generally have large or medium market capitalizations. FSBDX has returned 24.5% over the past three years.
Sonu Kalra is the fund manager of FSBDX since 2013.
To view the Zacks Rank and the past performance of all large-cap growth mutual funds, investors can click here to see the complete list of funds.
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