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 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 Vanguard PrimeCap Fund VPMCX, BlackRock Exchange Portfolio STSEX and BNY Mellon Large Cap Securities Fund DREVX. 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.
Vanguard PrimeCap Fund invests most of its net assets in large and medium-capitalization companies. VPMCX advisors prefer to invest in stocks with above-average earnings growth potential that is not reflected in their current market price.
Vanguard PrimeCap Fund has three-year annualized returns of 14.7%. As of the end of March 2023, VPMCX had 175 issues and 7.9% of its assets were invested in Eli Lilly.
BlackRock Exchange Portfolio fund seeks to minimize capital gains by investing most of its net assets in a diversified portfolio of common stocks and convertible securities, which, according to its advisors, have high growth potential. STSEX advisors prefer to invest in large and mid-cap companies.
BlackRock Exchange Portfolio has three-year annualized returns of 16.4%. STSEX has an expense ratio of 0.77% compared with the category average of 0.84%.
BNY Mellon Large Cap Securities Fund seeks to create a broadly diversified portfolio of growth stocks, value stocks and sometimes both by investing most of its assets along with borrowings, if any, in equity securities of large-capitalization companies. DREVX advisors choose to invest in stocks based on fundamental analysis factors.
BNY Mellon Large Cap Securities Fund has three-year annualized returns of 14.1%. Karen Miki Behr has been one of the fund managers of DREVX since September 2021.
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.
Get Your Free (STSEX): Fund Analysis Report
Get Your Free (VPMCX): Fund Analysis Report
Get Your Free (DREVX): Fund Analysis Report
To read this article on Zacks.com click here.
This article originally appeared on Zacks
Top Gaining Stocks
Top Losing Stocks