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.
Additionally, 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 other than the willingness to park money for a long period of time while investing in these securities. This is because these may experience relatively greater fluctuation than the other fund classes.
Below, we share with you three top-ranked large-cap growth mutual funds, namely Fidelity Advisor Series Equity Growth Fund FMFMX, MFS Massachusetts Investors Growth Stock Fund Class A MIGFX and JPMorgan Growth Advantage Fund Class A VHIAX. 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.
Fidelity Advisor Series Equity Growth Fund invests most of its net assets in equity securities of companies with above-average growth potential, according to Fidelity Management & Research Company. FMFMX fund managers choose to invest in common stocks based on fundamental analysis factors like financial condition and industry position, as well as market and economic conditions
Fidelity Advisor Series Equity Growth Fund has three-year annualized returns of 15.1%. As of the end of February 2022, FMFMX has 163 issues and has 10.47% of its assets invested in Microsoft Corporation.
MFS Massachusetts Investors Growth Stock Fund Class A seeks long-term capital appreciation by investing most of its net assets in common stocks, which represent an ownership interest in companies.MIGFX chooses to invest in companies its advisor believes to have above-average earnings growth potential compared to others.
MFS Massachusetts Investors Growth Stock Fund Class A has three-year annualized returns of 11.5%. MIGFX has an expense ratio of 0.70% compared with the category average of 0.99%.
JPMorgan Growth Advantage Fund Class A seeks long-term capital growth by investing most of its net assets in common stocks of large-capitalization companiesthat the adviser believes have strong earnings growth potential. VHIAX may also invest in small and mid-cap companies.
JPMorgan Growth Advantage Fund Class A has three-year annualized returns of 13.5%. Timothy RV Parton has been one of the fund managers of VHIAX since the end of January 2002.
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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