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, a relatively higher tolerance for risk is a prerequisite, alongside the willingness to park money for an extended period, while 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 large-cap growth mutual funds, namely Amana Mutual Funds Trust Growth Fund AMAGX, Fidelity Series Blue Chip Growth Fund FSBDX and Commerce Funds The Growth Fund CFGRX. 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 funds.
Amana Mutual Funds Trust Growth Fund invests most of its net assets in common stocks of domestic and foreign companies in accordance with Islamic principles. AMAGX is diversified across industries and companies, and follows the large-cap value investment style.
Amana Mutual Funds Trust Growth Fund has three-year annualized returns of 14.7%. As of February 2023, AMAGX had 37 issues and 8.6% of its assets were invested in Apple.
Fidelity Series Blue Chip Growth Fund invests in common stocks of blue-chip companies which generally have large or medium-market capitalizations. The fund is non-diversified.
Fidelity Series Blue Chip Growth Fund has three-year annualized returns of 13.8%. Sonu Kalra has been one of the lead managers of FSBDX since November 2013.
Commerce Funds The Growth Fund invests primarily in the common stocks of companies that had low price volatility in the past and are similar to those included on the Russell 1000 Growth Index. CFGRX may invest a significant amount of its assets from time to time in technology sectors.
Commerce Funds The Growth Fund has three-year annualized returns of 11%. CFGRX has an expense ratio of 0.74% compared with the category average of 0.99%.
To view the Zacks Rank and the past performance of all large-cap growth mutual funds, investors can click here to see the complete list of large-cap growth mutual funds.
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