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MARKETS LIVE BLOG:

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5 Top-Ranked Large-Cap Growth Funds

Zacks Equity Research
Updated

Large-cap growth mutual funds provide excellent opportunities to investors who choose long-term capital appreciation over dividend payouts and are simultaneously interested in steady returns. Funds having significant exposure to growth securities are believed to provide higher returns. This is because growth stocks are high quality stocks with the potential for revenue and earnings growth at a rate faster than the industry average. Though growth funds may experience more fluctuations than the other fund classes, these are suitable for investors with a higher risk tolerance and the willingness to park funds for the longer term.

Separately, large-cap mutual funds focus on acquiring securities of companies having market capitalization of more than $10 billion. Large-cap funds are ideal for investors seeking high returns that come with lower risk than the small-cap and mid-cap funds.

Below we share with you 5 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 .

T. Rowe Price Growth Stock (PRGFX) invests a large share of its assets in common stocks of companies with strong growth prospects. Though PRGFX generally invests in securities of domestic companies, PRGFX may also invest in common stocks of non-U.S. companies. The T. Rowe Price Growth Stock fund has a three-year annualized return of 13%.

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Joseph B. Fath is the fund manager since 2014.

Schwab Large-Cap Growth (SWLSX) seeks long-term capital appreciation. SWLSX invests the lion’s share of its assets in common stocks of large-cap companies with a market capitalization similar to those in the Russell 1000 Index. The Schwab Large-Cap Growth fund has a three-year annualized return of 9.7%.

As of December 2015, SWLSX held 108 issues with 7.45% of its assets invested in Amazon.com Inc.

MassMutual Premier Disciplined Growth Service (DEIGX) invests primarily in common stocks of growth-oriented companies. DEIGX is believed to maintain a portfolio that provides higher returns than the Russell 1000 Growth Index. The MassMutual Premier Disciplined Growth Service fund has a three-year annualized return of 10.5%.

DEIGX has an expense ratio of 0.70% compared with the category average of 1.18%.

Laudus US Large Cap Growth (LGILX) seeks growth of capital over the long run. LGILX invests the majority of its assets in equity securities of large-cap domestic companies with a market capitalization greater than $3 billion. LGILX may invest a maximum of one-fifth of its assets in securities of foreign companies. The Laudus US Large Cap Growth fund has a three-year annualized return of 9.1%.

Lawrence G. Kemp is the fund manager since 2013.

Frost Growth Equity Investor (FACEX) invests a large chunk of its assets in equity securities of companies located in the U.S. FACEX may also invest in securities of companies located in foreign lands and ADRs. FACEX chooses to hold securities for a longer period of time. The Frost Growth Equity Investor fund has a three-year annualized return of 10.7%.

FACEX has an expense ratio of 1.05% compared with the category average of 1.18%.

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 .

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 https://www.zacks.com/funds.


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Zacks Investment Research