Growth mutual 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. These funds are excellent choices for investors seeking long-term capital appreciation over dividend payout.
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 fluctuation than the other fund classes.
Below we will share with you three top-rated all-cap growth mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) and is expected to outperform its peers in the future.
Top All-Cap Growth Mutual Funds to Boost Your Returns: USAA Aggressive Growth Fund (USAUX)
USAA Aggressive Growth Fund (MUTF:USAUX) primarily invests in equity securities of domestic companies with large-size market capitalizations. The fund focuses on acquiring securities of companies that are believed to have above-average growth prospects.
USAUX invests mainly in domestic companies, but may also invest around 20% of its assets in securities of non-U.S. companies, including those from emerging markets. USAA Aggressive Growth has one-year annualized returns of 22.5%.
USAUX has an expense ratio of 0.81% as compared with the category average of 1.11%.
Top All-Cap Growth Mutual Funds to Boost Your Returns: MFS Core Equity Fund (MRGKX)
MFS Core Equity Fund (MUTF:MRGKX) seeks appreciation of capital. The fund invests a huge portion of its assets in equity securities. MRGKX invests in growth companies or value companies, or it may invest in both growth and value companies. MFS Core Equity R6 has one-year annualized returns of 16.2%.
Joseph G. MacDougall is the fund manager of MRGKX since 2008.
Top All-Cap Growth Mutual Funds to Boost Your Returns: Fidelity Select IT Services Portfolio (FBSOX)
Fidelity Select IT Services Portfolio (MUTF:FBSOX) invests a large chunk of its assets in equity securities of companies involved in the information technology industry. The fund invests in both U.S. and non-U.S. companies.
This non-diversified fund bets on growth-oriented companies irrespective of their market cap. Fidelity Select IT Services has a one-year annualized returns of 34.7%.
As of May 2018, FBSOX held 51 issues, with 18.01% of its assets invested in Visa Inc Class A.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>