Growth 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.
Meanwhile, large-cap funds are an ideal investment option for investors looking for a high return potential that comes with lower risk than small-cap and mid-cap funds. These funds have exposure to large-cap stocks, providing long-term performance history and assuring more stability than what mid cap 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. To view the Zacks Rank and past performance of all the large-cap growth funds, investors can click here to see the complete list of funds .
Praxis Growth Index A (MGNDX – MF report) seeks long-term capital growth. MGNDX invests a major portion of its assets in securities of domestic large-cap companies included in the Standard & Poor’s 500 Growth Index. MGNDX maintains a portfolio to track the performance of the fund’s benchmark index. The Praxis Growth Index A fund has a three-year annualized return of 12.7%.
Dale Snyder is the fund manager since 2013.
Bridgeway Large-Cap Growth (BRLGX – MF report) invests a large chunk of its assets in large-cap companies having strong growth prospects and which are traded in the U.S. Advisors select stocks on the basis of statistical analysis. BRLGX seeks total return with capital growth. The Bridgeway Large-Cap Growth fund has a three-year annualized return of 14.3%.
As of December 2015, BRLGX held 93 issues with 2.14% of its assets invested in The Kroger Co.
Goldman Sachs Large Cap Growth Insights A (GLCGX – MF report) seeks long-term capital appreciation. GLCGX invests a large portion of its assets in a broadly diversified portfolio of equity investments in large-cap US issuers and non-US issuers traded in the US. The Goldman Sachs Large Cap Growth Insights A fund has a three-year annualized return of 14%.
