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, T. Rowe Price All-Cap Opportunities Fund PRWAX and Pioneer Disciplined Growth Fund PINDX. 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 14.1%. As of August 2022, AMAGX had 36 issues and 10.1% of its assets were invested in Apple.
T. Rowe Price All-Cap Opportunities Fund invests most of its net assets in common stocks of domestic companies, which are the fastest growing or have the greatest growth potential. PRWAX may also invest in foreign stocks with a similar objective.
T. Rowe Price All-Cap Opportunities Fund has three-year annualized returns of 12.3%. PRWAX has an expense ratio of 0.81% compared with the category average of 0.99%.
Pioneer Disciplined Growth Fund seeks long-term capital growth by investing most of its net assets in domestic common stocks and other equity instruments such as depositary receipts, warrants, rights, equity interests in real estate investment trusts and preferred stocks irrespective of their market capitalization. PINDX advisors may also invest in securities of any industry or market sector and in initial public offerings of equity securities.
Pioneer Disciplined Growth Fund has three-year annualized returns of 12.0%. Ashesh Savla has been one of the fund managers of PINDX since December 2005.
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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