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, relatively higher tolerance for 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.
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.
TIAA-CREF Growth & Income Retirement (TRGIX – Free Report) invests a huge portion of its assets in equity securities that have the prospect for dividend income, capital appreciation or even both. The fund normally invests in securities of large-cap companies. TIAA-CREF Growth & Income Retirement has one-year annualized returns of 18.1%.
As of Jun 30, 2018, TRGIX held 321 issues with 3.76% of its assets invested in Apple Inc.
T. Rowe Price Blue Chip Growth (TRBCX – Free Report) invests heavily in common stocks of large as well as mid-cap blue-chip companies. The fund focuses on companies that have solid financial fundamentals, seasoned management, and strong market positions. T. Rowe Price Blue Chip Growth has one-year annualized returns of 25%.
TRBCX has an expense ratio of 0.70% compared with the category average of 1.07%.
Laudus U.S. Large Cap Growth (LGILX – Free Report) seeks capital growth for the long run. LGILX invests a bulk of its assets in equity securities of U.S. large cap companies whose market-cap is higher than $3 billion. Additionally, up to 20% of the fund’s assets may be invested in foreign equity securities. Laudus U.S. Large Cap Growth has returned 26.2% in a year’s time.
Lawrence G. Kemp is the fund manager of LGILX since 2013.
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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