The Reynolds Blue Chip Growth Fund (MUTF: RBCGX) is an IRA mutual fund focused on long-term capital appreciation. The fund invests in companies that are well-established in their industries and have above average growth potential. The companies usually have a market capitalization of at least $1 billion, which is why they are called “blue chip.” The fund may appeal to growth seeking investors who prefer companies with proven track records.
Here are the specifics for the Reynolds Blue Chip Growth mutual fund for today’s mutual fund spotlight:
Investing Strategy: The fund’s manager invests in blue chip companies that can benefit market-wise from the use of proprietary products, processes or services. Nearly 100% of the fund’s assets are invested in common stocks of domestic and foreign companies. Investments in foreign companies are done through American Depositary Receipts (ADRs).
Expense Ratio: The fund is moderately priced with a 1.8% expense ratio and $75 transaction fee, compared with other funds in the category. It has a Morningstar rating of four stars, but its 12-month and 5-year return has outperformed some of the five star rated funds in the category.
Top 5 Holdings: The top stocks in the Reynolds Blue Chip Growth fund include mass media trendsetter Apple Inc. (NASDAQ: AAPL) 2.39%, Chinese language internet search provider Baidu Inc. (NASDAQ: BIDU) at 1.26%, construction and mining equipment manufacturer Caterpillar Inc. (NYSE: CAT) at 0.81%, wholesale retailer COSTCO Wholesale Corp. (NASDAQ: COST) at 0.59%, and mass media giant Google Inc. (NASDAQ: GOOG) at 0.55%
Returns: The Reynolds Blue Chip Growth Fund’s 12-month return of 30.3% outperformed the broader markets’ 22% return. Its 5-year 82.3% return is overwhelming better than the 8% and 1% respective returns of the Dow Jones Industrial Average and S&P 500 during the period.
Other Fund Statistics
- Total Assets: $277.2 million (as of 6/3/11)
- Minimum Investment: $2,500
- Fund Manager: Frederick L. Reynolds
- Manager’s Tenure: Since August 1988
